Hong Kong’s Largest Bitcoin Etf Assets Up Five-Fold Since October
Hong Kong’s largest bitcoin futures exchange-traded fund (ETF) witnessed a five-fold increase in assets, reaching over $100 million in the last five months. This surge was driven by local investors chasing the cryptocurrency’s rally. Hong Kong entered the crypto trading scene relatively late, approving its first three cryptocurrency futures ETFs in late 2022.
CSOP Asset Management, overseeing the CSOP Bitcoin Futures ETF, reported substantial demand growth in February. Alessandro Zhu, deputy head of fixed income at CSOP Asset Management, attributed this rise to the approval and launch of spot bitcoin ETFs in the U.S., driving investor confidence in the token’s limited supply and potential price increase. Bitcoin’s remarkable outperformance compared to Hong Kong stocks also fueled demand.
Read Also: CRYPTO MARKET OUTLOOK – TRENDS OF EVENTS FEBRUARY 26TH 2024
While cryptocurrency trading is prohibited in mainland China, offshore Chinese financial institutions can invest in bitcoin ETFs in Hong Kong. Bitcoin’s recent 45% gain, reaching around $63,000, is nearing its November 2021 record highs.
CSOP Ether Futures ETF also experienced a doubling of assets this year, with surging volumes. The average daily turnover for CSOP Bitcoin Futures ETF reached $2.8 million, compared to $0.97 million last year, now rivaling turnover in some Hong Kong property giants.
There is anticipation in the market for Hong Kong to approve its first spot bitcoin ETF this year, as officials aim to establish the city as a virtual asset hub. Kennix Chan, executive director of Victory Securities, highlighted promising signs with numerous spot bitcoin ETF applications submitted to the Hong Kong Securities and Futures Commission in recent months.
South Korea’s Ruling Party Backtracks On Spot Bitcoin Etf Election Promise
South Korea’s People Power Party has indefinitely postponed its proposal to ease cryptocurrency restrictions, including lifting the ban on local spot Bitcoin (BTC) ETFs. Local sources suggest the reversal may stem from challenges aligning with government and financial authorities on crypto policies.
Earlier, reports indicated the governing party was considering promises to delay taxing crypto profits and allow domestic institutions to introduce spot Bitcoin ETFs. However, the People Power Party removed virtual assets from its policy priorities, postponing the announcement indefinitely.
In January, the nation’s financial regulator reiterated its ban on financial institutions introducing cryptocurrency ETFs, citing misalignment with the Capital Markets Act. Local investors face restrictions on spot crypto ETFs, while foreign crypto futures products remain accessible.
Despite the U.S. Securities and Exchange Commission’s recent approval of a spot Bitcoin ETF, South Korea’s Financial Services Commission maintains caution, citing perceived investment risks in digital assets.
In contrast, the opposition Democratic Party, with similar crypto ETF pledges, officially announced its campaign promises last week. South Korea’s general election is slated for April 10.
Users Report Zero Balances And Millions In Crypto Missing Due To Coinbase Outage
Coinbase, a major cryptocurrency exchange, experienced technical issues causing users to see zero balances. The problem was linked to increased traffic after Bitcoin briefly hit $64,000.
On Feb. 28, some users were shocked to find their Coinbase accounts showing zero funds, leading to panic and confusion. Despite concerns of a hack, Coinbase assured users that their funds were safe. CEO Brian Armstrong explained the app’s outage was due to a “large surge of traffic.”
Coinbase acknowledged the zero balance issue and reported problems with buying and selling. Customer trading improved, but increased traffic might still cause errors for some customers.
In an update at 13:05 PST, Coinbase mentioned activity normalization and ongoing monitoring. Armstrong tweeted that the app was “recovering” after testing a “10x surge in traffic,” exceeding expectations.
The recent trading surge followed Bitcoin’s price hitting nearly $64,000 but has since slightly dropped, currently trading at over $61,000.
Bitcoin Payment Services Launched In Seven African Countries By Strike
Strike, a Bitcoin payments app, expands into Africa with services now available in Gabon, Ivory Coast, Malawi, Nigeria, South Africa, Uganda, and Zambia. CEO Jack Mallers plans further expansion in the future.
Developed by Chicago-based startup Zap, Strike, similar to Cash App or Venmo, uses blockchain technology for transactions in these African countries. Users can buy/sell Bitcoin (BTC) and USDT, and access local fiat currency on-ramps/off-ramps and global payments via Bitcoin’s Lightning network for fast, low-cost transactions.
Strike enters Africa amidst growing Bitcoin and stablecoin popularity in countries with high inflation rates, like Argentina and Turkey. Nigeria, the largest African market, witnesses increased crypto adoption amid the devaluation of the naira by almost 50% against the U.S. dollar.
The move into Africa aligns with Strike’s vision of the continent as a hub for financial innovation, addressing challenges posed by high inflation and currency devaluation.
Strike’s expansion into Africa follows its global rollout in November, targeting over 65 countries, including Latin America, Asia, and the Caribbean. Users in 35+ countries can purchase BTC through the app, with a 3.9% fee for non-U.S. customers.
In other news, Strike CEO Jack Mallers, a Bitcoin advocate, divests entirely from the U.S. dollar, emphasizing Bitcoin’s potential to counter fiat debasement. Mallers criticizes U.S. monetary policies and sees Bitcoin as aligned with American values of personal freedom, equal opportunity, and innovation.
IRS Hires Consensys, Binance Us, And Taxbit Executives To Strenghten Crypto Supervision
The IRS is hiring crypto industry professionals to boost expertise in digital assets. Two former cryptocurrency executives, Sulolit “Raj” Mukherjee and Seth Wilks, have been hired. Mukherjee worked at Binance US and ConsenSys, while Wilks was vice president at TaxBit.
They will lead the IRS’s efforts in cryptocurrency compliance and enforcement, but their specific roles are yet to be disclosed. The US is in the process of regulating cryptocurrency activities, with agencies like the IRS proposing stricter rules. The IRS introduced new cryptocurrency taxation rules requiring brokers and exchanges to report sales.
These rules, presented with the US Treasury Department last year, aim to close the tax gap and standardize regulations. However, critics, including Congressman Patrick McHenry, call for clearer and more specific regulatory requirements.
Scammers Attack Matthew Perry’s X Account, Promote Crypto
In a deleted post on X, scammers pretended to be the Matthew Perry Foundation, urging crypto donations.
Rolling Stone reported scammers targeted Matthew Perry’s late “Friends” star account, promoting fake crypto donations through a deceptive website.
The foundation, in an Instagram update, warned against the fake website and urged reporting impostors. They advised donating only through MatthewPerryFoundation.org.
Established in November 2023, the Matthew Perry Foundation honors the actor’s dedication to helping those battling addiction. Perry passed away tragically in October 2023.
A cyberattack also hit MicroStrategy’s X account. Hackers promoted a fake “MSTR” token, leading to the theft of nearly $500,000 in crypto.