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Welcome to the first edition of Datawallet Daily for the week. As always, we’re spotlighting the key stories that have shaped the crypto market in the last 24 hours:
- Hong Kong Approves Spot Bitcoin and Ether ETFs
- PAXG Surges to $2.9K Amid Geopolitical Crisis
- April Sees Highest Ethereum Loan Liquidations Since June 2022
- Germany’s Top Federal Bank to Offer Crypto Custody Services
Hong Kong Approves Spot Bitcoin and Ether ETFs
Hong Kong has taken a significant step towards becoming a leading crypto hub by approving several spot Bitcoin and Ether ETFs. Asset management giants such as China Asset Management, Harvest Global, Bosera, and HashKey have received the green signal to roll out these ETFs, some forging partnerships with trading entities like OSL and BOCI International.
These approvals, encompassing both conditional and in-principle consents, are geared towards fortifying Hong Kong’s status as a global hub for virtual assets. Hong Kong initiated a crypto-friendly regulatory framework back in June 2023 and has since licensed pivotal platforms like HashKey and OSL to offer retail trading services.
These developments stand in stark contrast to the more restrictive cryptocurrency policies prevalent in mainland China.
PAXG Surges to $2.9K Amid Geopolitical Crisis
Amid rising geopolitical tensions in the Middle East, the gold-backed digital asset PAX Gold (PAXG) saw a significant price increase, spiking to $2,923 on Saturday, which marked a more than 20% premium over the physical gold price of $2,342.90 per ounce. In contrast, Bitcoin displayed a perfect negative correlation with PAXG, suggesting it’s increasingly unreliable as a geopolitical hedge.
This trend was underscored by PAXG’s robust performance, which did not extend to other gold-backed tokens like tether gold (XAUT). Meanwhile, market analysts, including those from Goldman Sachs, have adjusted their forecasts, predicting a continued rise in gold prices.
April Sees Highest Ethereum Loan Liquidations Since June 2022
In the first two weeks of April, Ethereum lending markets experienced a significant surge in loan liquidations, reaching the highest monthly volume since June 2022. Recent flash crashes have exacerbated these liquidations, despite a slight recovery in crypto prices following a sharp selloff. The majority of these liquidations occurred in the lending protocols Aave and Compound, totaling nearly $130 million.
This level of liquidation activity hasn’t been seen since the month following the collapse of the $40 billion Terra ecosystem. The recent downturn in crypto markets, including Bitcoin’s fall from its all-time high, has also led to nearly $1.7 billion in crypto liquidations over the last three days, primarily affecting bullish positions.
Germany’s Top Federal Bank to Offer Crypto Custody Services
Landesbank Baden-Württemberg (LBBW), Germany’s largest state-backed lender, has announced a partnership with Austrian exchange platform Bitpanda to offer crypto custody services. Targeting a market launch in the second half of 2024, LBBW aims to provide these services initially to its corporate clients.
The strategic partnership will leverage Bitpanda’s “Investment-as-a-Service” infrastructure to facilitate the storage and procurement of cryptocurrencies such as Bitcoin and Ether. LBBW highlights this initiative as a response to growing demand from corporate customers and a strategic move to incorporate crypto assets into future business models while ensuring high security standards.
Other breaking news
- UK Plans New Crypto, Stablecoin Laws by July
- Solana Mainnet Beta Update Aims to Fix Congestion
- OKX Introduces WIF and MEW Spot Trading Amid Memecoin Surge
- Investors Hesitant as Crypto Funds Witness $126M Weekly Outflows
- ‘Satoshi Era’ Bitcoin Moves After 14 Years of Dormancy
For the latest updates on digital asset markets, follow us on X @Datawalletcom.
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