Daily News | Musk Stated That His Company Will Not Issue Cryptocurrencies; Hong Kong Is Considering Allowing Retail Investors to Participate In Spot ETF Investments

2023-11-06, 04:41

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## Crypto Daily Digest: Hong Kong is considering allowing retail investors to participate in spot ETF investments, and the four major tokens will be unlocked this week

Recently, <a href="/price/dogecoin-doge" target="_blank" class="blog_inner_link">Dogecoin</a> designer Doge Designer reminded on the X platform that Elon Musk and its AI project xAI are not associated with any such crypto tokens. Musk replied, "It is very clear that my company will not create and issue crypto tokens.”

According to CoinGecko data, global assets invested in spot <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs currently total $4.16 billion, of which nearly half (or $2 billion) are invested in seven spot Bitcoin ETFs launched in Canada since 2021. Canada is also the location of the largest Bitcoin ETF among the 20, known as the Purple Bitcoin ETF, with assets of $819.1 million.

In addition, the ETC Group Physical Bitcoin (BTCE. DE) launched by Germany in June 2020 currently has assets of $802 million, making it the second largest ETF launched to date. The other seven ETFs in Europe are all registered in tax havens such as Jersey, Cayman Islands, and Liechtenstein, and have much smaller product transactions in Brazil and Australia.

So far, US regulatory agencies have only approved crypto ETFs related to futures contracts, and are currently considering up to 10 applications for spot crypto ETFs. CoinGecko said, "It remains to be seen whether the potential US spot Bitcoin ETFs can attract stronger investor interest and surpass Canadian and German ETFs.”

According to Blockworks, although the wave of Bitcoin spot ETFs being approved is emerging in the crypto ecosystem, Arthur Hayes stated that institutional interest in Bitcoin may “herald a situation that we may not ultimately like.” He stated that the same institutional entity could also launch Bitcoin mining ETFs, adding that “BlackRock is the largest shareholder in some of the largest mining businesses.”

Hayes explained that asset management companies like BlackRock are actually “agents of the state,” acting according to the state's instructions. In the ETF system, users use legal currency to buy derivatives. The asset management company bought some Bitcoin and handed it to a custodian. Users are actually unable to use Bitcoin, as they are buying financial assets rather than Bitcoin itself.

Hayes warns that if the size of BlackRock's ETF becomes too large, it may actually strangle Bitcoin as it is just a pile of immovable Bitcoins. He stated that Bitcoin is the opposite of a centralized currency. But if most of the funds are ultimately kept by one or several institutions, the consequences will be difficult to imagine.

On November 6th, Michael Saylor, founder of MicroStrategy, stated in an interview with CNBC Squawk on the Street program that “Bitcoin provides businesses with an innovative strategy to protect their capital and create shareholder value by combining their balance sheet with Bitcoin (BTC), thereby breaking free from the vicious cycle of expensive acquisitions, stock repurchases, dividends, and debt.”

Regarding spot ETFs, according to Bloomberg, Hong Kong Securities Regulatory Commission CEO Leung Fung Yi stated in an international interview that if regulatory issues are met, Hong Kong is considering allowing retail investors to participate in spot crypto ETFs. Liang Fengyi stated that Hong Kong welcomes innovative technologies to improve efficiency and customer experience solutions, and is willing to try as long as new risks are resolved.

According to Bloomberg analyst Jamie Coutts, if the current adoption rate continues, the daily users of blockchain technology may reach 100 million by 2028. Coutts pointed out on X (formerly Twitter) that in the bull and bear markets of the past few years, the adoption of blockchain has been "increasing without decreasing." The analyst said, “If one does not come into contact with one of the biggest structural trends of the next decade, it may come at a high cost.”

According to Coutts' data, the daily active addresses exceeded 5 million in the third quarter of 2023, an increase of 14% compared to 2022, while the average quarter-on-quarter growth rate since 2019 has been 29%. “If a more moderate 20% month-on-month growth rate is adopted, the daily number of users will reach 100 million by 2028.”

According to Token Unlocks data, this week GLMR, HFT, EUL, and APT will experience a one-time large unlock of tokens, including:

At 0:00 (UTC) on November 7th, <a href="/price/moonbeam-glmr" target="_blank" class="blog_inner_link">Moonbeam</a> will unlock 3.04 million GLMRs (approximately $688,000), accounting for 0.39% of the circulating supply;

At 0:00 (UTC) on November 7th, Hashflow will unlock 160 million HFTs (approximately $41.83 million), accounting for 73.74% of the circulating supply. The "Early Investors" and "Core Team" sections will begin unlocking this week;

At 3:04 (UTC) on November 9th, Euler will unlock 140,000 EULs (approximately $500,000), accounting for 0.75% of the circulating supply;

At 0:00 (UTC) on November 12th, <a href="/price/aptos-apt" target="_blank" class="blog_inner_link">Aptos</a> will unlock 24.84 million APTs (approximately $171.1 million), accounting for 10% of the circulating supply. The "investors" and "core contributors" sections will begin unlocking this week.

## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1699251840BTC 11.51.57.png)
Most historical accumulated funds are concentrated in the range of $32,495 to $36,000, forming a chip concentration zone. In the short term, it has already reached the 36,000 USD level. It is expected to continue oscillating and may retest $32.8K USD. We recommend holding the four-hour moving average for stability.

### ETH
![](https://gimg2.gateimg.com/image/article/1699251864ETH 11.51.57.png)
Last weekend, after stabilizing at $1,857 USD, <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> broke the overall downtrend and ended a 7-month decline trend. Short-term stability on the trendline and the $1,857 USD support level will continue to rise. It is expected to continue challenging $1,951 USD and $2,037 USD. Medium-term trading volume has shifted from bearish to bullish.

### BCH
![](https://gimg2.gateimg.com/image/article/1699251885BCH 11.51.57.png)
A potential head and shoulders bullish pattern has appeared in the medium term. The short-term has tested the $232.32 USD support three times without breaking it, with the potential to continue to rise and complete the right shoulder structure. A conservative long position is recommended after breaking through the key resistance at $269.08 USD, aiming for a target of $296.78 USD.

## Macro: Non-farm payroll exceeding expectations, pause in interest rate hikes may have been confirmed, following the statements of Fed officials this week

After the October quarterly adjustment in the United States, the non farm employment population increased by 150000 people, the smallest increase since June. The market expected 180000 people, and the total number of new employment in August and September was 101000 fewer than before the correction; The monthly unemployment rate recorded 3.9%, the highest level since January 2022, and the market expects it to be 3.8%.

After the release of non farm data, federal fund futures prices showed that the likelihood of the Federal Reserve raising interest rates by January next year decreased to less than 20%. Swap market prices indicate that the Federal Reserve is expected to lower interest rates for the first time until June next year.

Federal Reserve officials will be deployed in the new week, including Chairman Powell, New York Fed Chairman Williams, as well as Logan, Bostick, and Barkin. Investors want to know if the latest signs of economic slowdown are enough to persuade the Federal Reserve to end interest rate hikes and seek further clues about the future interest rate path.

The signal of cooling in the job market and service industry on Friday reinforced the idea that the Federal Reserve has ended raising interest rates, causing a frenzy on Wall Street, with the three major US stock indexes achieving their best weekly performance in a year. The US swap market now shows only a 16% chance of the Federal Reserve raising interest rates again in January next year, and has fully digested the possibility of a rate cut in June instead of July.

George Mateyo, Chief Investment Officer of Key Private Bank, believes that the latest data only confirms the Federal Reserve's decision to suspend interest rate hikes this week while emphasizing the 'not too hot or too cold' economic background - which will be welcomed by investors. “These data are just one of a series of positive economic reports that the Federal Reserve needs to declare victory,” said Craig Erlam, a senior market analyst at the Federal Reserve.

Atlanta Fed Chairman Bostick stated that he is "satisfied with this number" and will remain patient in interest rate policy. Minneapolis Fed Chairman Neil Kashkari believes that although the slowdown in recruitment is good news for the Fed, he does not want to overreact to a month of data.

Richmond Fed Chairman Barkin also has a similar view on the latest employment data, stating that his views on raising interest rates again will depend more on the inflation report. Former US Treasury Secretary Summers also warned investors not to rush to announce that the Fed's work has been completed.

Despite the ongoing conflict in the Gaza Strip, there have been no clear signs of a warming up in the Middle East situation. Because the supply of crude oil has not yet been affected by Israel and Palestine, while US crude oil production is at a historical high, coupled with poor white line economic data from major countries leading to demand anxiety returning to the market, hedge funds have significantly reduced their long bets on US crude oil, the largest since July 2021. As market sentiment worsened, oil prices fell to their lowest point in two months.

On the supply side, according to analysts' expectations, Saudi Arabia is expected to reconfirm its voluntary production reduction of 1 million barrels per day until December. The US House of Representatives passed a bill to strengthen oil sanctions against Iran in a strong bipartisan vote, but it is unclear how effective the bill will be if it truly becomes law. Although Congress can pass sanctions legislation, such measures typically come with national security exemptions, allowing the President discretionary power when applying the law.

This week's market data has guided a return to a relatively light state. For the United States, the only significant economic report will be the University of Michigan's preliminary consumer confidence survey. Last month's survey revision surprised the market, with one-year consumer inflation expectations rising by 4.2%. But Powell refuted this data at a press conference, stating that it is an outlier, and most consumer surveys show that inflation expectations are still "well anchored."

Despite the weakening of US bond yields and the US dollar, gold can still not decisively break above $2,000 per ounce, which has sparked some cautious sentiment in the market. In addition, commodity analyst Christopher Vecchio pointed out that the geopolitical factors driving the rise in gold prices are fading, and only escalating tensions can sustain its safe haven buying.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>