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

BitMEX Returns to Derivatives Arena with Prediction MarketBitMEX, a name synonymous with the early days of crypto derivatives, has made a return to its core focus with the launch of a prediction market.Through this new product, the company aims to captivate traders by offering them the opportunity to wager on real-world events, effectively extending the boundaries of crypto derivatives trading.Photo by Amjith S on UnsplashBetting on the outcome of real-world eventsThis shift in direction is being overseen by Stephan Lutz who took the helm as CEO and group CFO in 2021.In a blog post announcing the product launch on Tuesday, the firm expressed its vision for the prediction market, asserting that it would introduce an entirely new dimension to crypto derivatives trading.The product is designed to diversify traders’ portfolios and yield returns based on predicting the outcomes of real-world occurrences, an offering that the company feels holds significant promise. Especially in bear markets characterized by subdued volatility, the prediction market could serve as a valuable instrument for traders seeking to enhance their strategies.Novel initial wagersBitMEX’s inaugural move into the prediction market sees the firm offer an array of contracts for traders to explore. Among those initial offerings are contracts enabling wagers on various outcomes, such as the percentage recovery rate of FTX’s bankruptcy claims and the likelihood of the US Securities and Exchange Commission (SEC) approving a Bitcoin exchange-traded fund (ETF) by October 17. These contracts underscore BitMEX’s intent in covering a wide spectrum of topics, with the firm promising to introduce more options in the near future.The prediction market holds the potential to revolutionize the way traders engage with real-world events, introducing a novel form of participation that transcends traditional trading boundaries. This launch has significant potential for BitMEX as it endeavors to reclaim its position in the competitive crypto derivatives market.Change of strategyUnder the stewardship of former CEO Alexander Höptner, BitMEX embarked on a diversification strategy termed “beyond derivatives,” delving into areas like spot trading and exploring new business avenues. However, the departure of Höptner in October ushered in a change in direction for the firm. The introduction of the prediction market now symbolizes BitMEX’s return to its foundational business model, with a renewed focus on derivatives.In May, the Seychelles-headquartered firm introduced perpetual contracts relative to SUI and PEPE tokens. Later that month, it launched a dedicated virtual asset service to Hong Kong-based customers. Hong Kong was its original center of operations when the company was first formed. It has since moved those operations to Singapore while maintaining its corporate presence in the Seychelles.BitMEX’s fresh foray into the derivatives space not only signifies a return to its roots but also presents traders with a means to trade relative to real-world events. By offering an eclectic range of contracts, the platform seeks to attract traders who crave more than conventional crypto trading. This strategic move could serve as a catalyst for BitMEX as it strives to regain its foothold in the competitive crypto sector.

GRVT (Gravity), a self-custodial hybrid crypto exchange, has received $5 million in funding from Abu Dhabi-based venture capital firm Further Ventures. That’s according to a report published by The Block on Jan. 21. GRVT seeks to blend the benefits of both centralized exchanges and decentralized exchanges in a hybrid model built using ZKsync’s Validium ZK Chain. The platform offers off-chain order matching paired with on-chain settlement at a rate of 600,000 transactions per second (TPS). Settlements are secure and verifiable on the blockchain, while the user maintains custody of his/her assets, and the order book infrastructure is nevertheless centralized.Photo by Towfiqu barbhuiya on UnsplashEquity-based funding dealThis latest equity-based funding round ran from October until it was closed out in December. Further Ventures, an entity that specializes in early-stage startup funding, led the round, making this its latest investment into a crypto-sector startup.  Earlier this month, the venture capital firm led a funding round into Paris-based crypto wallet technology firm Dfns. Last year, it collaborated with Singapore-headquartered crypto trading firm QCP Capital, in facilitating its expansion in Abu Dhabi.  Other crypto-related investments include staking services provider Twinstake, crypto custodian Tungsten, blockchain infrastructure platform Fuze and crypto derivatives platform Kemet Trading.  Further Ventures counts ADQ, Abu Dhabi’s sovereign wealth fund, among its investors. In 2022, it established a $200 million fund, which was earmarked for investment into early-stage startups in the fintech, digital assets and supply chain sectors. In the past, Hong Kong-based GRVT has held pre-seed and seed funding rounds that involved GRVT token warrants. On this occasion, the funding deal was structured as equity. GRVT CEO Hong Yea explained that equity was chosen as it was felt that the GRVT token should be held in reserve for the community. Additionally, structuring the funding round around equity means that the holding company has the freedom to pivot or expand into alternative business lines in the future. $14.3 million in funding to dateBack in October 2023, the project raised $7.1 million in funding based on a $39 million valuation. That round was co-led by Matrix Partners alongside Delphi Digital, with further participation by Susquehanna Investment Group, CMS Holdings, ABCDE and Hack VC. Matter Labs, the developer of the ZKsync scaling network that GRVT runs on, was also a participant.  This latest funding round brings GRVT’s total capital raised to $14.3 million. In March of last year, the firm had raised $2.2 million from a private token sale. Expanding spot & options tradingIt’s understood that the new funding will be used to expand the platform’s crypto spot and options trading. Furthermore, the firm has plans to acquire an upgraded full Class F license from the regulator in Bermuda. Currently, the Bermudan authorities have issued the company with a modified Class M crypto business license. In an effort to unlock its offering to a broader global market, the company also has plans to pursue a Markets in Crypto-Assets (MiCA) license within the European Union and a virtual assets service provider (VATP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai. 

Over Half of Leading Korean Conglomerates Are Venturing Into Web3 and BlockchainMore than half of South Korea’s conglomerates are ushering in the emerging era of Web3 in an attempt to seize new business opportunities presented by a decentralized internet that permits open access and sharing of resources as well as ownership of personal data.Photo by Abbe Sublett on UnsplashSurging interest among Korea’s biggest enterprisesAccording to a survey conducted by local news outlet E Today, 46 of Korea’s top 82 corporations as designated by the Fair Trade Commission (FTC) are pursuing ventures in Web3 and blockchain this year, including those related to non-fungible tokens (NFTs), security tokens, and logistics chains. The survey examined whether the corporations had issued coins, tokens, or NFTs; whether they had corporate divisions or subsidiaries dedicated to blockchain-related projects; and whether they had made investments in blockchain or digital asset-related companies as well as coin and token issuance projects. It was conducted remotely using publicly disclosed information and press releases.Of the 82 total companies, 48 are under the mutual investment restriction system, which prohibits independent corporations from investing their capital in the form of an exchange. Commercial law prohibits mutual stock holdings between parent companies and their subsidiaries in order to prevent a processive increase in company assets through mutual investments. Of those 48, the survey revealed that 32 are engaged in blockchain and Web3-related projects.Nearly 60.42% of the mutual investment restriction group and 48.78% of the total survey group were found to have become involved in the field by signing business deals with blockchain and digital asset-related companies or utilizing blockchain technology themselves.On the other hand, only seven corporations, or 8.54%, had directly issued digital assets or invested in related companies. On the other hand, 26 firms, or 31.71%, invested in NFT-related businesses.Navigating the path to Web3 adoptionHowever, although Web3 is gaining traction as the next generation of future innovation, it has not yet become the dominant trend as Web3 platforms have yet to attract a significant user base. This hindrance can be attributed to the ongoing crypto winter and strict financial regulations.Woo Jong-soo, Director of the Pohang University of Science and Technology’s (POSTECH) Blockchain Research Center and a professor at POSTECH’s Graduate School of Information and Communication, also pointed out that in order for blockchain to exert its influence as an innovative technology, it should be open to the public like Bitcoin. There will be limitations in implementing centralized private blockchains into corporate businesses, he said.But despite these challenges, major leading companies are still pushing their own Web3 and blockchain projects. “The current situation is not an ideal time for diving into Web3 and blockchain businesses, but everyone is quietly preparing while waiting for regulatory uncertainties to be resolved,” said an anonymous developer working at a major corporation.Notably, Park Hye-jin, a professor at the Seoul School of Integrated Sciences and Technologies, revealed that she had received separate Web3 business consultation requests from several teams under the same division of a particular corporation and that these teams were essentially unaware of each others’ ventures into the field. The corporation, which ostensibly announced that it had closed its business, also continues to request consultations, she claimed, highlighting the corporate world’s acknowledgment of Web3’s potential.“Individuals can now monetize and have control over their data, which big tech companies like Facebook and Instagram used to own,” Park explained. “The essence of Web3 is that it is ushering in an era where users have the ability to take initiative.”