Bitcoin Bitcoin ETF

Bitcoin Spot ETFs to Hit Hong Kong Market on April 30, Expert Warns of Imminent Rate War

In a significant development for the Bitcoin (BTC) market, Hong Kong will witness the start of trading of several spot Bitcoin ETFs on April 30.

This milestone follows the successful approval and subsequent commercialization of Bitcoin ETFs in the United States earlier this year under the regulatory oversight of the Securities and Exchange Commission (SEC).

With institutional adoption on the rise and Bitcoin reaching its all-time high of $73,700 in March, the upcoming launch of these ETFs in Hong Kong holds great promise for the cryptocurrency market.

Rate battle looms

The Hong Kong Securities and Futures Commission (SFC) made a notable announcement on April 15, approving the trading of several Bitcoin and Ethereum spot ETFs. This regulatory approval paved the way for Bitcoin ETF trading in Hong Kong.

Industry experts Eric Balchunas and James Seyffart of Bloomberg anticipate a rate war will ensue as ETF issuers strive to attract the largest number of customers.

Balchunas and Seyffart predict possible rate war in Hong Kong as Bitcoin ETFs prepare to launch. The Harvest Fund, for example, plans to enter the market with full fee waivers and the lowest rate of 0.3% after the waiver period.

Revised Bitcoin ETF Projections

The competitive fee structures of these Bitcoin ETFs are expected to generate greater interest among investors, which could attract greater assets under management.

Balchunas acknowledges the relatively low rate levels and describes them as a positive sign for the market. Lower fees are likely to increase the attractiveness of these index funds and increase their assets under management (AuM).

While optimism surrounds the launch of Bitcoin ETFs in Hong Kong, Eric Balchunas offers a cautious analysis of potential capital inflows into this new market.

Blachunas suggests that these ETFs could lag behind their US counterparts, which have already achieved trading volumes of more than $200 billion since their launch in January.

Balchunas revised his initial forecast, estimating that these Hong Kong ETFs could attract up to $1 billion in assets under management in the first two years of operation, doubling his previous projection of $500 million.

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Bitcoin spot ETFs to receive green light in Hong Kong in April

According to a recent Reuters report, Hong Kong will become the first city in Asia to launch Bitcoin spot ETFs. Notably, initial approvals for these ETFs are expected to be announced next week, significantly exceeding industry expectations for these types of launches this year.

The revival proposed by Hong Kong

According to the report, the decision to introduce spot Bitcoin ETFs comes as Hong Kong seeks to revive its status as a preeminent financial center, in which pandemic-related restrictions have been somewhat eased, China’s economic slowdown and tensions between China and the United States.

By adopting cryptocurrency investment vehicles, Hong Kong aims to attract new global investments and take cryptocurrency adoption to new heights.

Adrian Wang, CEO of Metalpha, a Hong Kong-based crypto asset manager, emphasized the importance of introducing Bitcoin ETFs in Hong Kong, noting the potential for greater global investment and broader adoption of cryptocurrencies.

This move follows the success of the United States, which launched the first US-listed spot Bitcoin ETFs in January and attracted approximately $12 billion in net inflows, as Bitcoinist previously reported.

While the Hong Kong Securities and Futures Commission (SFC) and the three Chinese firms declined to comment, the Hong Kong units of China Asset Management and Harvest Fund Management recently obtained approval from the SFC to manage portfolios with investments greater than 10% in virtual markets. asset.

These parent companies are major mutual fund companies in China, each managing more than 1 billion yuan ($138 billion) in assets.

Bitcoin Futures Success Fuels Interest in Spot Bitcoin ETFs

Cryptocurrency trading is prohibited in mainland China. However, Chinese offshore financial institutions have shown great interest in participating in the development of crypto assets in Hong Kong.

The city had already approved ETFs for cryptocurrency futures in late 2022, with the CSOP Bitcoin Futures ETF being the largest. It has accumulated around $120 million in assets under management, up sevenfold since September 2023.

In addition to the aforementioned asset managers, Hong Kong-based Value Partners has expressed its exploration of launching a spot Bitcoin ETF, although it has not revealed whether an official application has been filed.

Additionally, at least four asset managers from mainland China and Hong Kong, including China Asset Management, Harvest Fund Management and Bosera Asset Management, have filed applications to launch Bitcoin spot ETFs.

As the regulatory landscape evolves, the introduction of spot Bitcoin ETFs in Hong Kong is expected to pave the way for greater investment opportunities and contribute to the growth and maturation of the global cryptocurrency market.

At the time of writing, the market-leading cryptocurrency has witnessed significant price volatility. It approached its all-time high on Monday and hit a high of $72,600. However, it encountered upper level resistance, falling towards the $67,600 range. This represents a 3.5% reduction in the last 24 hours alone.

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Bitcoin Spot ETF: Bitwise Closes Ranks with $200 Million Initial Fund

Competition among Spot Bitcoin ETF issuers is intensifying as the period for possible approval of these funds approaches. Asset manager Bitwise is the issuer currently making waves as it could potentially overtake the world’s largest asset manager, BlackRock, in terms of seed funding for its respective ETFs.

Bitwise Bitcoin ETF Could Receive $200 Million Seed Funding

Bitwise’s latest amendment to its S-1 filing with the Securities and Exchange Commission (SEC) shows that the asset manager has secured investor interest for its ETF to receive $200 million at launch. Bloomberg analyst Eric Balchunas highlighted its importance, saying it “exceeds” BlackRock’s initial fund of $10 million.

The analyst noted that Bitwise actually seeding its ETF with such an amount could be a “huge help” in the early days of the run. It is believed that the SEC will likely approve the pending ETF applications simultaneously. As such, Bitwise’s ability to create shares worth $200 million could give the asset manager an edge in terms of meeting client demands.

Bitwise had already demonstrated its intention to lead from the start following the launch of its commercial Bitcoin ETF. This move could help the asset manager gain a lot of interest in their Bitcoin ETF even before launch. This way, the public sees it as the first option at the time of launch.

Notably, Bitwise did not mention who the authorized participant (AP) of its ETF would be. The AP would act as an intermediary between the investor and the ETF issuer, as they are responsible for creating and redeeming ETF shares. While Bitwise has not named its AP, other issuers such as BlackRock have included it in their latest S-1 filing with the SEC.

BTC ETF Issuers Show Their Hands in Latest Wave of Registrations

Bitcoin ETF spot issuers have made some notable additions in their most recent and final amendment to their S-1 filings. These inclusions also give an idea of the strategy these issuers may seek to adopt to attract investors to their funds. In the case of Fidelity, the asset manager will seek to attract investors with its relatively low fees.

Balchunas noted that Fidelity’s “sponsorship fee” of 0.39% turns out to be the lowest so far among other issuers that have disclosed theirs. Interestingly, Invesco is adopting a more attractive strategy, as it revealed in its latest amendment that it will waive fees for the first six months and the first $5 billion in assets.

The Bloomberg analyst mentioned that fee wars will continue to exist in the Bitcoin spot ETF arena as issuers look to outdo each other.

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BITO Bitcoin ETF becomes the fastest ETF to reach $1 billion in assets under management

The Bitcoin-linked ProShares ETF reached $1 billion in assets under management in just two days.

Bitcoin-linked ProShares ETF reached $1 billion in assets under management in just two days, a record for the ETF industry.

The Gold GLD ETF held the previous record, having surpassed the $1 billion mark in three days after its launch in 2004.

A second future bitcoin ETF is due out next week.

The ProShares Bitcoin Strategy ETF ($BITO), the first exchange-traded bitcoin-linked fund in the United States, became the fastest ETF to reach the $1 billion asset under management (AUM) mark.

The previous record holder, the GLD Gold ETF, took three days to break ten figures and $BITO did so in just two. Since it was launched yesterday, the fund has turned over $2 billion in volume.

BITO was launched yesterday as an alternative investment vehicle for retail and institutional investors interested in indirect exposure to bitcoin. The fund invests in bitcoin futures rather than real BTC, therefore the appreciation of the fund’s share price may not match the price of bitcoin in the cash market.

An ETF investing in bitcoin futures rather than owning BTC was a trend spurred by Securities and Exchange Commission (SEC) chairman Gary Gensler. In September, Gensler said that offers seeking exposure to bitcoin through CME-regulated futures would be more likely to pass, citing concerns about “investor protection.”

A little over a month later, the first BTC-linked ETF began trading in the United States. 25

It is doubtful that a bitcoin futures ETF offers a higher level of investor protection than a spot BTC. Either way, investors can opt for the highest level of protection by buying and holding real bitcoins themselves. While it’s a subtle activity, learning how to become financially sovereign with Bitcoin is an opportunity that is sure to pay off in the long run.

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Ethereum: 7,000% increase until 2022 if history repeats itself

Bitcoin’s jump to $55.3K filled the market with euphoria, partially eclipsing Ethereum’s 5% gains in two days. As the main altcoin moved more slowly to the north, the expectation of a slow and steady rally grew in the market.

Ethereum, at the time of printing, was trading at $3,540, with daily gains of 1.23% versus gains of 5.73% for BTC. However, there were signs that history was repeating itself. So it seemed likely that ETH’s price would skyrocket on the charts.
Ethereum Fractal May Raise Prices

Fractals are useful indicators to identify turning points in the market. They are often used to identify the direction the price will move. Interestingly, Ethereum saw a fractal indicator in 2017 that included four technical patterns that increased the price of ETH by 7,000%.

The pseudonym analyst Jaydee_757 first saw the Etherum fractal and pointed out that the same set of bullish indicators flashed again in 2021.

In 2017, a bullish auction price structure pushed ETH’s monthly RSI into an extreme overbought zone above 94. This triggered a short-term sideways consolidation, lowered the RSI reading and, in turn, a correction in the Stochastic RSI.

However, in late 2017, the Stochastic RSI passed and became bullish with its blue line crossing the saffron line. This crossing between the %K and %D lines further reinforced the bullish search, giving way to 5x gains.

By January 2018, the value of altcoin had risen another 500%, closing above $1,200. It coincided with the RSI, forming a double top.

In particular, Ethereum seemed to reflect the same fractal movements as 2017 when it entered the fourth quarter of 2021. A strange similarity can be seen in the 2017 and 2021 RSI structures, as they both experienced a double top and are oversold in the market. . monthly chart.

After the bullish hammer blow, the price of ETH increased 70 times in just six months. In the longer term, the alt rose 3,400% to hit $4,300, 16 months after painting a bullish RSI crossover.
This is what the metrics tell us

Ethereum’s NVT index reached its highest value since February 2020 on October 4th. These high NVT values ​​indicate that the network value exceeded the value transferred to the network.

While this often involves a price bubble, in the case of ETH it can represent legitimate stages of growth.