Hong Kong financial services platform plans spot Bitcoin ETF launch for Q1

Bitget enhances crypto exchange app with Web3 wallet and swap serviceSeychelles-incorporated crypto derivatives and copy trading platform Bitget has advanced its DeFi capabilities by integrating a Web3 wallet and swap service into its crypto exchange application.Photo by Shubham’s Web3 on UnsplashEnhancing platform app featuresThis new feature empowers users to seamlessly swap their tokens and access DeFi services through the platform’s Web3 wallet, according to a press release the company published concerning the development earlier this week. Bitget outlined that the primary goal of the integration is to offer users diverse options for trading their crypto assets within the exchange ecosystem.Bitget Managing Director Gracy Chen set out the significance of the recently ushered in changes. Chen stated:“Integrating Web3 services into our CEX platform marks a significant milestone for Bitget. By offering users the freedom to access various DeFi services alongside the convenience and security of our CeFi platform, we are empowering them with a unique experience. Bitget aims to provide a comprehensive ecosystem that caters to the evolving needs of our users, all while maintaining the highest standards of security and reliability.”Service offering expansionFurthermore, the app is set to expand its services, gradually incorporating a non-custody wallet, an NFT marketplace and decentralized applications (dApps), Chen confirmed. Bitget users can now experience enhanced flexibility in their trading activities, as the exchange plans to make most listed currencies available in the Web3 wallet for DeFi trading. The swap feature, a core element of this integration, aggregates liquidity from 10 decentralized exchanges (DEXs), including popular platforms like Uniswap, PancakeSwap and Curve Finance. Chen confirmed further details to Cointelegraph, stating:“At the core of the recent integration is our Web3 Wallet, which facilitates the secure storage, management, and control of their digital assets. Alongside the wallet, we’ve launched a Swap service, which is an advanced DeFi aggregator.”The firm acquired the BitKeep crypto wallet earlier this year, with the product subsequently having been officially rebranded to the Bitget Wallet in August. The move has worked out well for the firm, with it confirming at the end of July that it had achieved 20 million users as a consequence. The more recent integration not only facilitates asset management services but also provides native storage solutions for users.$100 million fundThis initiative aligns with Bitget’s ongoing efforts to establish a strong foothold in the crypto space. The exchange has consistently pursued expansion, launching multimillion-dollar funds to support the growth of the Web3 ecosystem. At an event in Singapore recently, Bitget introduced a $100 million fund dedicated to supporting venture firms and investing in the next generation of Web3 projects.Earlier this week, the company committed a $10 million fund towards the objective of nurturing high-potential crypto startup projects in India.

The local government of Busan, the second-largest city in South Korea, announced in a press release that it held the 3rd Busan Blockchain Regulation-free Zone Steering Committee (Committee) meeting at the Busan Eurasia Platform, a community center located near Busan Station.  The meeting took place last Thursday at 15:00 (KST), attended by 12 Committee members, including Busan’s Vice Mayor for Economic Affairs Kim Kwang-hee, Busan Technopark Chairman Kim Hyung-gyun, Busan International Finance Agency Chairman Lee Myung-ho and Busan Information Industry Promotion Agency Chairman Kim Tae-yeol.Photo by Finn on UnsplashThe meeting was intended to discuss strategies to revitalize the blockchain regulation-free zone (blockchain zone) and to attract new blockchain businesses to the region. Busan has been recently struggling with developing and attracting blockchain technology companies to the region, which has cast doubt on the city’s ability to retain its status as the regulatory sandbox zone.   New 24 members, new commitment to invigorating blockchain zone Established in October last year, the 3rd Committee comprises 24 new members who have expertise in blockchain technology. The Committee aims to raise awareness of the blockchain zone’s potential and foster the blockchain industry within the region.  Kim Sang-min, Vice CEO of healthcare company Erom, was appointed Committee Chairman at the meeting. Known as an expert in the blockchain ecosystem, Kim currently serves as a blockchain policy advisor for Busan and has experience in taking the lead in establishing the Busan Digital Asset Exchange (BDX) last year.  More meetings in store to become a blockchain hub The meeting focused on creating subcommittees in an effort to facilitate the Committee’s seamless operation. Moreover, members reached a consensus on holding meetings at any time when warranted, in both online and in-person formats.  During the meeting, Busan Vice Mayor Kim said the newly launched Committee will contribute to identifying innovative businesses with great potential that require both cutting-edge blockchain technologies and a regulatory sandbox environment. 

The first tranche of spot Bitcoin and Ether exchange-traded funds (ETFs) have been officially approved to start trading in Hong Kong on April 30. Announcement from regulatorHong Kong’s Securities and Futures Commission (SFC) announced the official approval of the first batch of spot Bitcoin and Ether ETFs on April 24 via a press release seen by CoinTelegraph. The regulator first provided outline approval for these products on April 15. Additionally, some of the fund management firms themselves have come out to outline product trading commencement at the end of the month. The first batch of approved Hong Kong-based ETFs include China Asset Management’s (ChinaAMC) Bitcoin and Ether-based ETFs.  In a press release, the firm verified that its products will begin trading on April 30. HashKey Capital and Bosera Asset Management have partnered to offer similar spot products. A spokesperson for HashKey told Bloomberg that they’re ready to commence trading of the product at the end of the month.Photo by Ruslan Bardash on UnsplashIn-kind vs. cash-only approachHarvest Global Investments is the third fund manager that intends to launch such a product offering. The launch of these three spot Bitcoin and Ether-based ETFs on April 30 signals a new era for digital asset investment in Hong Kong. Unlike their counterparts in the U.S., which rely on a cash creation model, these ETFs in Hong Kong embrace an in-kind creation mechanism. This approach holds the potential to significantly boost assets under management (AUM) and trading volume, as highlighted by Bloomberg ETF analyst Rebecca Sin. The unique dynamics of Hong Kong's ETF creation model present an opportunity for market growth and innovation, positioning the region as a key player in the global digital asset landscape. By providing a regulated framework for retail and institutional investors, along with the ease of converting digital assets into fully regulated ETFs, ChinaAMC aims to cater to a growing demand for such offerings. China Asset Management’s Head of Digital Assets, Thomas Zhu, emphasized in the firm’s press release the in-kind creation feature. Potential fee warAs the ETF market in Hong Kong gains momentum, competition could result in downward pressure on fees. With issuers vying to offer the most competitive fees to attract customers, the stage is set for a potential battle of pricing strategies. Harvest, for instance, has already entered the fray with a full fee waiver and the lowest fee at 0.3% after the waiver, Bloomberg ETF analyst James Seyffart outlined on the X social media platform. This competitive landscape bodes well for investors, with fees for the first ETFs proving to be lower than expected, as noted by Eric Balchunas, senior ETF analyst at Bloomberg. All eyes will be on the performance and impact of these financial products relative to the crypto market in the Asian region and further afield.