Xangle Joins Coreum Mainnet as Validator

Venture Smart Financial Holdings Ltd. (VSFG), a Hong Kong-based financial services firm, is strategically positioning itself to enter the growing cryptocurrency exchange-traded fund (ETF) market, with its latest reveal being an interest in launching a spot ETH ETF in Q2.Photo by Michael Förtsch on UnsplashIn a recent interview with The Block, VSFG Chairman Lawrence Chu revealed the company's plans to apply for a spot ether ETF in Hong Kong. Executing on that plan is contingent upon the successful launch and approval of its spot bitcoin ETF. Q1 launch for bitcoin ETFLast month, the firm disclosed that it is gearing up for a spot bitcoin ETF launch within the first quarter of this year. VSFG was the first to reveal such an intention within the ETF space in Hong Kong. However, competition is already starting to bubble, as subsequently, Chinese asset manager Harvest Fund announced that it has gone one better and actually filed an application for a spot bitcoin ETF product in the Chinese autonomous territory. Chu shared insights into the firm's current status, mentioning that VSFG is in the final phase of preparing its application for a spot bitcoin ETF to be submitted to the Hong Kong Securities and Futures Commission. He emphasized the rigorous regulatory discussions that precede such submissions in Hong Kong, characterizing the imminent application as being in the advanced stages, stating, “Submission [for application] is almost like when you're 95% there.” Chu acknowledged the importance of ongoing conversations with regulators, expressing readiness by stating, “but that really depends on the conversation we have with the regulator. We will be ready.” Competitive spotlight on ETF feesHighlighting the evolving landscape in Hong Kong, Chu noted that nearly 10 fund companies are exploring the launch of potential spot crypto ETFs in the city. That call echoes similar comments made recently by Livio Weng, CEO of digital assets firm HashKey. The prospect of a potential fee war among asset managers was also discussed, drawing parallels with developments observed in the U.S. bitcoin ETF market. That seems likely, given that downward pressure on spot bitcoin ETF fees in the United States has also spread to Europe where Invesco and WisdomTree have cut fees by 60% on similar products. Global ether ETPsWhile commentators such as Standard Chartered Bank speculate on the likely approval of spot ether ETF products in the U.S. by May and VSFG indicates a potential Q2 launch in Hong Kong, there are already a number of similar products out in the wild around the world. According to data compiled by crypto data aggregator platform CoinGecko, the top 10 ether funds account for $5.5 billion in value. Among them is the XBT Provider ether exchange-traded product (ETP), the world’s first Ethereum-based security made available on a regulated exchange, namely Nasdaq Stockholm in Sweden, by crypto ETP specialist CoinShares. While the race is on in Hong Kong to launch crypto ETFs, on an international basis, competition is heating up as various global fintech hubs look to kindle what is likely to make up a significant part of the ETF sector pie in the years to come.

CMB International Securities, the brokerage and investment banking arm of China Merchants Bank (CMB), has acquired a virtual asset trading license and rolled out related trading services in Hong Kong.Photo by Traxer on UnsplashFirst Chinese bank-affiliated brokerage to add crypto servicesThe development is significant as it marks the entry of the first brokerage firm directly affiliated with a Chinese bank into the digital assets arena. It takes on further significance due to the importance of its parent company within financial services in Asia.Recent reports suggest that China Merchants Bank has assets under management (AUM) of RMB 15 trillion, equating to around $2.1 trillion. Headquartered in Shenzhen, the bank is China’s seventh largest in terms of AUM. Compared globally, an S&P Global Market Intelligence report published in 2024 positioned the bank in 25th place by measure of AUM. CMB International Securities disclosed that it started offering such services on Aug. 18 via a post on the Chinese social media platform WeChat. It explained that the launch followed the company’s acquisition of an upgrade to its existing trading license from Hong Kong’s Securities and Futures Commission (SFC) on July 11, authorizing the brokerage to offer virtual asset trading. 24/7 digital asset tradingThe company outlined that it has added virtual asset trading via its mobile application, offering qualified investors 24/7 digital asset trading. Following the launch, eligible investors can now trade Bitcoin (BTC), Ethereum (ETH) and the USDT stablecoin. These professional or eligible investors must open a CMB International Securities cash account before they can commence trading digital assets on the CMB platform. Given the ongoing ban on crypto trading activity within mainland China, CMB International has to ensure that its product offering doesn’t reach mainland residents. At the time of the company being awarded its virtual assets trading license last month, Hong Kong Web3 Association Co-Chair Joshua Chu spoke to that requirement. He stated:“By securing this licence, CMBI gains regulated access to Hong Kong’s dynamic crypto market, yet it must operate within strict boundaries that prevent direct mainland participation, reflecting the delicate balance of innovation and legal constraint.” ‘One country, two systems’“One country, two systems” is a constitutional principle of the People’s Republic of China that enabled the reunification of Hong Kong with China back in 1997. Many believe that while Beijing continues to impose a ban on crypto and hasn’t been vocal in its support of Hong Kong’s embrace of the crypto sector, there is an implied support nonetheless of Hong Kong’s development as a crypto hub.Hong Kong’s separate system allows China to let it develop as a proving ground for virtual assets. That tacit support has encouraged companies like Beijing-headquartered Tiger Brokers to pursue virtual asset trading licensing within the Chinese autonomous territory. Similarly, Victory Securities, a Hong Kong firm with a significant presence within the mainland Chinese market, has also pursued digital asset-related licensing in Hong Kong. This isn’t CMB International’s only crypto-related venture. Earlier this month, the company partnered with Singaporean digital asset exchange DigiFT in launching the Hong Kong-Singapore Mutual Recognition Fund. The development marked the first money market fund to be hosted on the Solana blockchain. 

METACON 2023 to Explore Innovative Metaverse Business ModelsAccording to a report by local crypto news outlet Tokenpost, METACON 2023, a conference focused on Web3 and the metaverse, is set to take place from June 29 to 30 at COEX, a convention and exhibition center in Seoul. This year’s event marks the third anniversary since its inception in 2021.Photo by GuerrillaBuzz on UnsplashInsights on the MetaverseAs the main event of Seoul Meta Week (SMW), METACON aims to showcase cutting-edge metaverse applications, explore innovative business models, and find ways to penetrate new markets. Titled “WEB 3.0 X METAVERSE: The Future of Hyper-Connected Experience,” METACON 2023 will feature presentations and discussions from approximately 40 speakers representing prominent companies. Among the featured speakers are representatives from The Sandbox, Google Cloud, Tencent, Shutterstock, DRESSX, The Fabricant, Nexon Korea, Amorepacific, SK Telecom, and LG Uplus.On June 29, Kerry Murphy, the Founder and CEO of The Fabricant, will provide insights into the impact of digital fashion on the real-life fashion industry. Following that, Murphy will engage in a discussion with Natalia Modenova, the Founder & COO of DRESSX, to talk about the philosophy of Web3 and collaborative efforts in shaping trends in digital fashion.Participation from traditional banksIn addition, visitors to the conference will have the opportunity to hear from representatives of four traditional Korean banks: KB Kookmin Bank, Shinhan Bank, Hana Bank, and Woori Bank. Other discussions throughout the event will cover a wide range of topics, including the work environment, digital art, the popularization of Web3, investments, and generative artificial intelligence (AI).The following day of the conference will commence with a keynote speech titled “Unlocking Brand Value in the Metaverse” by Sebastien Borget, the Co-founder and COO of The Sandbox, a community-driven blockchain gaming platform. After that, Dade Orgeron, the VP of 3D Innovation at US stock image provider Shutterstock, will deliver a talk on generative AI as a creative tool and discuss the company’s AI license policy.An official from Seoul Meta Week (SMW) stated that this year’s program was specifically designed to provide an agenda that encourages interaction between newcomers to the Web3 industry and established projects.