TronWeekly

Crypto World News

You are here: Home / Search for "hong kong"

Search Results for: hong kong

Solana And Avalanche Replace XRP And Tron In HKVAC’s Crypto Indexes

by

The Hong Kong Virtual Asset Consortium (HKVAC), a leading provider of ratings and indexes for the crypto industry, has announced major changes to its global crypto indexes. The HKVAC has removed Ripple’s XRP and Tron’s TRX from its top five and top 10 indexes, respectively, and replaced them with Solana (SOL) and Avalanche (AVAX).

According to the HKVAC’s statement, the reason for dropping XRP from its top five global crypto index was its declining market capitalization. XRP, once the third-largest crypto by market cap, has been overtaken by several other cryptocurrencies in the past year, including Solana.

The HKVAC’s decision to include Solana instead of XRP in its top five indexes reflects its growing influence and adoption in crypto. Solana has attracted many developers and users looking for alternatives to Ethereum. This dominant smart contract platform has faced challenges like network congestion, high fees, and environmental concerns.

XRP Competitor Tops HKVAC Index

Another notable change in the HKVAC’s indexes was the inclusion of Avalanche in its top 10 global crypto index, replacing Tron. Avalanche, a blockchain platform that supports multiple interoperable networks and enables decentralized applications, has also experienced a surge in demand and value in 2023.

The HKVAC has also updated its global large crypto index, which tracks the performance of the top 50 cryptocurrencies by market cap. The HKVAC has added five new cryptocurrencies to this index, namely Internet Computer (ICP), Near Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX).

The HKVAC’s revisions to its crypto indexes are expected to impact the crypto market as they reflect the changing dynamics and preferences of crypto investors and users. The HKVAC’s indexes are widely used by crypto exchanges, funds, and media outlets as benchmarks and indicators of the crypto industry’s health and direction.

Hong Kong Crypto Industry Expansion

The HKVAC’s announcement comes at a time when Hong Kong is showing its support and openness to the crypto industry. In December 2023, Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), announced that it is preparing to accept spot crypto exchange-traded funds (ETFs), investment products that track the prices of cryptocurrencies.

This move came after the United States Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETF applications on Jan. 10, 2024, ending a long-awaited and controversial process. The approval of spot crypto ETFs is a major milestone for the crypto industry, as it opens the door for more institutional and retail investors to access and invest in cryptocurrencies.

However, the SFC also emphasized that the crypto transactions conducted by these ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions. This means that the SFC will maintain its oversight and regulation of the crypto industry to protect investors and market integrity.

Related Reading | Vanguard’s Bitcoin ETF Resistance Sparks Investor Exodus, Powering Calls For Change

Bitcoin Spot ETF Approval Likely Next Week, Bloomberg Analysts Say

by

The chances of the Bitcoin spot exchange-traded fund (ETF) getting approved by the U.S. Securities and Exchange Commission (SEC) are very high, according to Bloomberg analyst Eric Balchunas. They estimate that the probability of the ETF failing has decreased from 10% to 5%.

A Bitcoin spot ETF has been a long-awaited and highly anticipated development in the crypto industry, as it is expected to boost the adoption and legitimacy of Bitcoin and increase its liquidity and price stability.

The SEC has been reluctant to approve a Bitcoin spot ETF, citing market manipulation, fraud, and investor protection concerns. However, the situation has changed recently, as the SEC has been ordered by a federal court to review and approve a Bitcoin spot ETF application by Valkyrie Digital Assets by January 10, 2024.

This ruling came after the SEC failed to meet the statutory deadline of 240 days to decide on the application, which was filed in June 2023. The court also rejected the SEC’s request for an extension, saying that the agency had enough time and resources to evaluate the proposal.

The court’s order has set a precedent and a deadline for the SEC to approve other pending Bitcoin spot ETF applications, such as those by VanEck, WisdomTree, and BlackRock. Bloomberg ETF analyst Eric Balchunas said that the probability of the Bitcoin spot ETF failing has dropped from 10% to just 5%, as the reasons for potential failure are unlikely to happen.

Bitcoin ETF Approval Hurdles

Bloomberg Analyst James Seyffart outlined three possible scenarios that could prevent the approval of the Bitcoin spot ETF in response to a follower’s question on Twitter. However, he also explained why these scenarios are improbable.

Ark Invest withdraws with reassurance regarding March: Ark Invest is one of the most prominent and influential supporters of the Bitcoin spot ETF, and its withdrawal could signal a lack of confidence in the approval process. However, Seyffart said this scenario is possible but unlikely, as Ark Invest has not indicated any intention to withdraw.

Gary Gensler overstates the issue, and the SEC refuses to advance new grounds or ignores the court. Gary Gensler is the chairman of the SEC, and he has been vocal about his skepticism and caution regarding crypto-related products. However, Seyffart said this scenario does not seem likely, as the court’s order binds the SEC and cannot ignore or defy it without legal consequences.

The Biden administration intervenes to stop the process: The Biden administration has the power to influence the SEC’s decisions, as it can appoint or remove its commissioners. However, Seyffart said this is another unlikely scenario, as the administration has not shown any interest or hostility towards the Bitcoin spot ETF.

Balchunas agreed with Seyffart’s analysis but suggested that the probability of failure might be closer to 5%. He said keeping a small window open for such possibilities is important, as the crypto market is unpredictable and volatile.

Related Reading | Hong Kong’s HashKey Adopts New Travel Rule Integration: Report

Bankman-Fried Escapes Further Charges After Fraud Conviction

by

Sam Bankman-Fried, the disgraced co-founder of FTX, will not face a second trial on additional charges related to his cryptocurrency fraud scheme after he was convicted of seven counts of fraud and conspiracy last month for orchestrating a massive scam that defrauded thousands of FTX customers and investors, prosecutors announced on Friday.

According to a letter sent to US District Judge Lewis Kaplan, prosecutors said they would not pursue further charges against Bankman-Fried, such as conspiracy to bribe foreign officials, commit bank fraud, and operate an unlicensed money transmitting business.

The letter stated that most of the evidence for these charges was already presented at the first trial and that the judge could take them into account at the sentencing hearing scheduled for March 28, 2024.

Proceeding with sentencing in March 2024 without the delay that would be caused by a second trial would advance the public’s interest in a timely and just resolution of the case, the letter read.

Bankman-Fried Convicted In $8B Crypto Fraud

Bankman-Fried’s conviction was the result of a lengthy investigation by the Manhattan US Attorney’s Office, the FBI, and the IRS, which exposed his elaborate scheme to divert FTX customer funds into his hedge fund, Alameda Research, and use them for risky investments, political donations, and lavish real estate purchases.

The prosecutors said that Bankman-Fried lied to his customers about the security and profitability of FTX, a cryptocurrency exchange platform he co-founded in 2019. He also manipulated the prices of FTX tokens, a digital currency issued by the platform, to inflate their value and attract more investors.

The scheme unraveled in late 2023 when FTX and Alameda Research filed for bankruptcy, leaving thousands of customers and investors with losses totaling over $8 billion. Bankman-Fried was arrested in Hong Kong, where he relocated his operations and extradited to the US for trial.

The conviction was hailed as a major victory by Manhattan US Attorney Damian Williams, who said that Bankman-Fried “betrayed the trust of his customers and investors and abused the power and potential of cryptocurrency for his gain.”

The fall Of Bankman-Fried

Bankman-Fried was once considered a rising star and a visionary in the crypto world, having built FTX into one of the most popular and innovative platforms for trading digital assets. In early 2022, FTX was valued at $32 billion, making it the third-largest crypto exchange by market capitalization.

However, his reputation and fortune quickly collapsed after his fraud was exposed, and he became a symbol of the dark side of the crypto industry. His case also prompted regulators and lawmakers to examine the risks and challenges of the emerging and largely unregulated sector.

Many experts and analysts believe that Bankman-Fried’s downfall marks a turning point for the crypto industry, which would have to adapt to more scrutiny and regulation. They also hope that his case will serve as a warning and a lesson for other crypto entrepreneurs and enthusiasts who must uphold higher standards of ethics and transparency in their endeavors.

Related Reading | Crypto Scam Alert: Singapore PM Warns Against Deepfake Fraud

Crypto Titans Forecast Bullish Revival For 2024 Funding Landscape

by

In a year-end exclusive report, The Block delves into the future of crypto funding, seeking insights from some of the most influential venture capital firms in the space. After grappling with a daunting 68% decline in total investments, amounting to $10.6 billion in 2023, the crypto funding landscape appears poised for a resurgence in 2024. Top players like Coinbase Ventures, Galaxy Ventures, Polygon Ventures, Multicoin Capital, and others share their perspectives on the upcoming year. Despite the setbacks faced in 2023, optimism prevails among these major players.

52268762944 425fe6d5fb o

Insights From Top Crypto Venture Capital Firms

Coinbase Ventures, the venture unit of the renowned crypto exchange, remains undeterred by the past year’s challenges. A spokesperson expressed increasing optimism for 2024, citing advancing regulatory clarity, maturation of protocol infrastructure, institutional participation, and innovation in on-chain product engagement as key drivers for a bright future. The commitment remains global, with expectations of increased activity throughout the year.

Galaxy Ventures, led by billionaire investor Mike Novogratz, acknowledges the challenges but maintains a vigilant commitment to early-stage projects. Despite a predicted challenging environment and the likelihood of flat or down rounds, the firm foresees potential consolidation in the industry, with larger companies engaging in mergers and acquisitions, particularly for startups with sustainable business models.

Meanwhile, Animoca Brands, headquartered in Hong Kong, expresses a very optimistic outlook for 2024. Co-founder and executive chairman Yat Siu notes a shift in momentum as the crypto market rebounds, foreseeing a substantially healthier funding environment. Siu highlights the potential for increased investment in web3 gaming, especially in Asia and the Middle East, as well as the integration of AI to enhance gaming experiences.

Shima Capital, an early-stage investor, maintains a cautiously optimistic stance for 2024, emphasizing a continued focus on infrastructure, gaming, and tokenization verticals. The firm believes it is still in the early innings of crypto and remains active in the space. Additionally, HashKey Capital, based in Asia, anticipates a bullish market ahead, actively seeking new investment opportunities, expanding its asset management business, and launching diverse funds catering to different preferences.

Multicoin Capital’s managing partners, Kyle Samani, and Tushar Jain, are also bullish for 2024, particularly for the Solana ecosystem. Samani identifies a huge opportunity for crypto in the AI revolution, emphasizing the shortage of GPUs and the potential for crypto-enabled compute marketplaces.

Moreover, Polygon Ventures anticipates a turnaround for web3 financing in 2024, citing resilient developer activity and bullish sentiments toward innovation and adoption. In addition, NGC Ventures, an Asia-based firm, remains optimistic about the crypto market and VC funding in 2024. General partners express preferences for verticals like AI, crypto, Bitcoin Layer 2 networks, and various decentralized applications.

Nevertheless, while the crypto funding landscape faced significant challenges in 2023, these top venture capital firms express confidence and positivity for 2024, anticipating a resurgence in investments and innovation in various crypto-related verticals.

Related Reading | Telcoin Wallet Users Lose $1.2M In A Polygon Exploit; TEL Price Plummets

Only 6 Countries Had Stablecoin Laws Despite Market Growth

by

The market for stablecoins, cryptocurrencies pegged to fiat currencies, has exploded in 2023. However, most countries still lack regulatory frameworks to govern these digital assets, according to a new report by PwC Global Crypto Regulation.

Only six countries – The Bahamas, The Cayman Islands, Gibraltar, Japan, Mauritius, and Switzerland – had enacted stablecoin legislation as of December 2023, according to analysis from PwC. This comes despite massive growth in the stablecoin market, which reached a valuation of $131 billion this month, according to CoinGecko data.

ezgif.com webp to png converted
Source: CoinGecko

Challenges In Governing Stablecoins

Stablecoins like Tether and USD Coin have become integral to crypto trading and DeFi platforms. Tether sees higher daily trading volumes than even Bitcoin. Still, few major economies have finalized rules around stablecoins.

The UK, EU, and US have initiated regulatory discussions but have not yet implemented formal oversight. Overall, 40% of the countries PwC assessed have taken no action on stablecoin legislation. This regulatory gap has raised concerns among some policymakers.

Critics argue that pegged cryptocurrencies require strong regulation, given their growing importance and risks. These assets aim to maintain a steady value, often $1 per coin, but experts warn they could face bank run-like panic if sentiment sours.

Recent failures like TerraUSD highlight the need for safeguards around reserves and governance. The FSB and other groups have pushed major economies to hasten rulemaking around systemically important pegged currency. So far, progress remains slow across most jurisdictions. However, some countries appear close to finalizing regulations.

UAE, Hong Kong Among Jurisdictions Finalizing Rules

While pegged cryptocurrency oversight lags globally, select regions aim to implement frameworks soon. The PwC report found that 25% of assessed countries have communicated plans or initiated rulemaking.

The UAE stands out for working to finalize a comprehensive stablecoin law this year. Other jurisdictions like Hong Kong are also looking to establish formal guidelines in the near future. These regulatory developments could pressure other nations to follow suit.

For now, the pegged crypto sector continues operating with little formal governance. But with market size approaching $131 billion, regulators may accelerate efforts to enact prudential oversight. As global standards emerge, more countries will likely pursue stablecoin-specific laws.

Related Reading | Litecoin’s Rise in Daily Activity Challenges Ethereum While Faces Price Turbulence

Crypto Inflows Surge: Mixed Sentiments Amid 11th Consecutive Week

by

In the fast-paced realm of crypto investment, the last week has marked the 11th consecutive week of inflows, albeit with a notable twist in investor sentiments. According to the latest Digital Asset Fund Flows Weekly Report, a total of $43 million was poured into various digital asset investment products. However, this figure reflects a marked decline compared to the robust inflows witnessed in the preceding weeks.

One of the intriguing facets of this week’s report is the surge in short position inflows, coinciding with the recent price appreciation in the digital asset market. As some investors anticipate potential downside risks, significant inflows into short positions have been observed, contributing to the dynamic nature of the market.

Regionally, Europe continues to dominate the inflows, attracting a substantial $43 million. In contrast, the United States witnessed a comparatively modest $14 million in inflows, with half of that amount directed toward short positions. Hong Kong experienced its second consecutive week of outflows, totaling $8 million, while Brazil reported minor outflows amounting to $4.6 million.

Capture 8

Bitcoin Holds Ground As Investors Express Crypto Skepticism

Maintaining its status as the leading cryptocurrency, Bitcoin drew $20 million in inflows. This brings the year-to-date inflows for Bitcoin to an impressive $1.7 billion. Interestingly, short positions on Bitcoin also saw increased interest, with $8.6 million in inflows, indicating a segment of investors expressing skepticism about the sustainability of current price levels.

Capture 9

Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalization, report highlights its sixth consecutive week of inflows totaling $10 million. It marks a stark contrast from just seven weeks ago when Ethereum experienced year-to-date outflows of $125 million. The recent positive trend has helped Ethereum recover, boasting overall inflows of $19 million yearly.

Altcoins Solana and Avalanche maintained their appeal in the market, attracting inflows of $3 million and $2 million, respectively, reaffirming their status as favorites in the diverse landscape of alternative cryptocurrencies.

Beyond cryptocurrencies, blockchain equities saw a significant milestone, with their largest weekly inflows on record at an impressive $126 million. This underscores the growing interest and confidence in blockchain-related investments, even amidst the broader market’s uncertain momentum.

Related Reading | Solana’s BONK Taipei Debut: Claims 3rd Memecoin Spot

C1 Fund Targets Bargains In Australian Crypto Market, Offers Up to 80% Discounts

by

The C1 Fund, a substantial $760 million pool of capital, aims to find affordable­ opportunities in Australia’s crypto market. It focuses on firms previously valued above $300 million. Backed by e­x-Coinbase legal expe­rts and financiers, the fund is looking to acquire se­condary shares from current shareholde­rs. They’re proposing discounts betwe­en 50% and 80%.

According to a pitch deck from The Australian Financial Review, C1 Fund believes that the digital assets market is undervalued due to the current market conditions, such as hyperinflation and rising interest rates. The fund aims to write cheques between $US20 million and $US50 million for each deal, focusing on crypto companies at the Series C stage or later.

The cryptocurrency sector has seen a resurgence of interest in recent months, with bitcoin surging above $US40,000 for the first time in two years and other cryptocurrencies following suit. However, some crypto companies have struggled to maintain their valuations in the private market, creating opportunities for bargain hunters like C1 Fund.

C1 Fund’s Bold Moves In Crypto Investments

One of the companies that C1 Fund has approached is Animoca Brands, a Hong Kong-based blockchain gaming company that was delisted from the ASX in 2020 for swapping stock for crypto tokens.

Since then, Animoca has grown into a $7.8 billion private company, with backing from Sydney-based Koda Capital and KTM Ventures. The company’s shares were sold at around $4.50 in its last capital raise, but C1 Fund has offered to buy them at around $1.12, a 75% discount.

Another target is Chainalysis, a US-based company that provides blockchain analysis and investigation services for businesses and law enforcement agencies. Chainalysis was valued at $US8.4 billion in 2022, but C1 Fund has claimed that $30 million of secondary preferred shares are available at $US15 a share, a 63% discount.

However, not all crypto companies will sell their shares at such low prices. Immutable, a Sydney-based crypto gaming developer that has raised almost $400 million in venture capital, has said that C1 Fund has not contacted it or its investors to buy secondary shares.

Immutable was valued at $US2.5 billion in its last Series C round, and its last secondary sale involved US-based venture firm PrinceVille buying shares at the same valuation.

Related Reading | MicroStrategy’s Bitcoin Surge Defies Traditional Markets: Report

Crypto Investment Boom: A Whopping $1.76B Flows In Within 10 Weeks

by

The cryptocurrency market has witnessed an unprecedented influx of $1.76 billion in the last 10 weeks, setting a new record since the launch of futures-based ETFs in the United States back in October 2021. According to the latest Coinshares Digital Asset Fund Flows Weekly Report, the current streak of inflows is the most substantial since the introduction of futures-based ETFs in October 2021.

Cryptocurrency Breakdown: Bitcoin, Ethereum, and More

Noteworthy contributions to this surge came from key players in the crypto space, with Canada, Germany, and the United States leading the way with significant inflows. In contrast, Hong Kong experienced minor outflows, contributing to an overall net outflow in Asia for the year.

Bitcoin emerged as a primary beneficiary, attracting $133 million in inflows, while Ethereum followed suit with $31 million. Notably, this marks Ethereum’s fifth consecutive week of positive inflows, bringing the total to $134 million. This recent surge has also reversed the negative sentiment that prevailed earlier in the year, with net flows turning positive at $10 million.

image 8

As per the report, digital asset investment products have witnessed a notable increase in assets under management (AuM), rising by 107% year-to-date. However, the total AuM currently stands at $46.2 billion, remaining below the all-time high of $86.6 billion seen in 2021. Despite this, trading volumes in exchange-traded products (ETPs) remain robust, reaching $2.6 billion for the week, representing 12% of total Bitcoin volumes.

In terms of geographical focus, Canada, Germany, and the United States played pivotal roles in driving the surge, with inflows of $79 million, $57 million, and $54 million, respectively. Hong Kong, on the other hand, experienced minor outflows totaling $15 million.

image 9

Surprisingly, even short-bitcoin, which witnessed a three-week streak of outflows, saw an influx of $3.6 million in the past week. This dynamic market behavior reflects the evolving nature of investor sentiment and strategies. Moreover, blockchain equities continued their impressive run, marking seven consecutive weeks of inflows. Last week’s $17.4 million inflow was the largest since July 2022, indicating sustained confidence in this sector.

While the crypto market continues to experience robust growth, it remains to be seen how this influx of funds will shape the landscape in the coming weeks and whether it will contribute to the market’s recovery towards its previous all-time highs.

Related Reading | Ethereum NFT Fever Strikes Again As Transaction Volume Hit $34M

Zodia’s Ripple-Powered Network Goes Global

by

Standard Chartered’s crypto venture, Zodia Custody, teamed up with Ripple-owned custody specialist Metaco’s network to revolutionize the third generation of crypto custody. The collaboration aims to facilitate global sub-custody services for institutions worldwide, allowing seamless safekeeping and settlement of digital assets. Julian Sawyer, Zodia Custody’s CEO, emphasized the significance of this integration, envisioning a network where multiple custodians are interconnected. This interconnected system enables institutions to utilize sub-custodians in different regions, leveraging regulatory permissions and compliance in a seamless manner.

Ripple
Zodia's Ripple-Powered Network Goes Global 8

Established in 2020, Zodia Custody specializes in secure digital asset storage, primarily catering to institutional clients such as corporations and professional investors. The crypto venture, supported by Standard Chartered, recently expanded its services to Hong Kong, marking a significant milestone in its global presence. Zodia Custody’s expansion strategy involves forming strategic partnerships with esteemed institutions, including Standard Chartered, Northern Trust, and Japan’s SBI Holdings. This collaborative approach strengthens its position as a leading digital asset custodian.

On the other front, Ripple, a key player in enterprise blockchain and cryptocurrency solutions, has embarked on a strategic partnership with Uphold, a global Web3 financial platform. This collaboration aims to enhance Ripple’s crypto liquidity capabilities, reinforcing its cross-border payment infrastructure.

Ripple Spearhead Georgia’s CBDC Development

Ripple’s expertise in central bank digital currency [CBDC] development has been reaffirmed by the National Bank of Georgia, which selected Ripple Labs as its technology partner for the digital Lari (GEL) pilot project. This significant milestone positions Ripple at the forefront of CBDC innovation, with its platform slated to plan and execute the pilot program.

As both Zodia Custody and Ripple continue to make strides in the evolving crypto landscape, their strategic partnerships and innovative approaches contribute to the seamless integration of digital assets into the global financial ecosystem. The collaboration between Zodia Custody and Metaco’s network is a testament to the evolution of crypto custody into a globally interconnected system, fostering efficiency and compliance in the handling of digital assets for institutional clients across borders.

U.S. Bitcoin ETF Battle Has A New Contender

by

There is a new contender in the spot Bitcoin ETF race. Pando Asset, a Swiss asset manager, filed an S-1 form with the U.S. SEC on November 29. If the regulator grants approval, Pando’s fund, identified by the ticker PBTC, will be available for trading on the Cboe BZX exchange, with Coinbase fulfilling the role of custodian. Pando initially entered the cryptocurrency market in Switzerland last year, introducing three crypto ETPs, followed by the launch of two ETFs in Hong Kong.

Bitcoin
U.S. Bitcoin ETF Battle Has A New Contender 10

Pando’s filing places them in a race alongside well-established entities such as BlackRock, Ark Invest, Fidelity, and Grayscale, all competing to become the issuers of the inaugural U.S. spot bitcoin exchange-traded fund. Although the SEC has yet to give the green light to any spot bitcoin ETF applications, industry experts speculate that the first approval may materialize as early as 2024.

In the interim, Grayscale, a major player in the cryptocurrency investment space, has made significant updates to the Grayscale Bitcoin Trust [GBTC] agreement. This marks the first amendment since 2018 and is designed to optimize the structure in anticipation of a conversion to a BTC spot ETF listing. Changes include the adjustment of the management fee collection method from a monthly to a daily basis and the introduction of the capability to commingle assets in omnibus accounts, streamlining the creation and redemption processes.

Bitcoin Futures OI Scales New Peak

Following a brief period of stagnation, Bitcoin recently surpassed the $38,000 mark, experiencing a resurgence in market activity. The renewed optimism is attributed to the potential approval of a spot exchange-traded fund [ETF]. This positive sentiment aligns with traditional market observers predicting imminent rate cuts. Anticipation of spot BTC ETF approvals has been a driving force behind increased institutional involvement in the digital asset market.

Notably, the open interest growth for CME Bitcoin futures has shifted, with Bitcoin Futures Open Interest on CME reaching an all-time high of 27.8% in relative dominance, surpassing Binance for the first time since the onset of the bear market. This shift underscores the integration of digital assets into substantial financial portfolios and highlights the growing sophistication of market participants.