China's Crypto Testing Ground Has Arrived! Hong Kong Exchange Releases Three Announcements: Huaxia Bitcoin and Ethereum Spot ETFs to be Issued

Bitcoin fell to the $63,000 level as the US PCE bolstered the US dollar buying, putting pressure on the stock and crypto markets. The Hong Kong Exchange issued three announcements announcing that Bosera HashKey, Huaxia, and Jiashi Bitcoin and Ethereum spot ETF shares are included as qualified securities for the Central Clearing System's multi-counter.

According to the three announcements released by the Hong Kong Exchange for Bosera HashKey, Huaxia, and Jiashi:

Bosera HashKey Bitcoin spot ETF shares and Bosera HashKey Ethereum spot ETF shares will trade in units of 10 shares, with Hong Kong dollars and US dollars as the trading currencies;

Jiashi Bitcoin spot ETF shares and Jiashi Ethereum spot ETF shares will trade in units of 100 shares, with Hong Kong dollars and US dollars as the trading currencies;

Source: PaNewsLab

Huaxia Bitcoin ETF shares and Huaxia Ethereum ETF shares will trade in units of 100 shares, with Hong Kong dollars, US dollars, and Chinese yuan as the trading currencies.

These ETFs are expected to be listed and traded on the Hong Kong United Exchange Limited starting April 30, 2024, and will be included as qualified securities for the multi-counter Central Clearing System, as defined by the general rules of Hong Kong Clearing.

The Huaxia Bitcoin ETF and Huaxia Ethereum ETF have been approved by the Hong Kong Securities and Futures Commission (SFC) and are scheduled to be issued on April 29 and listed on the Hong Kong Exchange on April 30. This marks the first introduction of such products in the Asian market, aimed at providing investment returns closely tied to the spot prices of Bitcoin and Ethereum.

Hong Kong's spot cryptocurrency ETFs, compared to physical cryptocurrency, are recognized by regulatory authorities, listed on traditional exchanges, managed by professional fund companies, and the cooperating cryptocurrency exchanges are regulated. These features, along with the world's first physical redemption mechanism, are expected to attract investors who wish to convert physical cryptocurrencies into ETF products.

In the United States, the Securities and Exchange Commission's attempt to classify Ethereum as a security has sparked controversy. Blockchain software company Consensys has already sued the US SEC last week over Ethereum regulation.

In the lawsuit, Consensys stated that the US SEC has been trying to illegally regulate Ethereum by targeting Consensys and other companies through specific enforcement actions. It seeks confirmation from the court whether the US SEC has the legal authority to regulate user-controlled software interfaces built on Ethereum.

According to a spokesperson from Consensys, here are the four main reasons supporting "Ethereum should not be considered a security":

The historical stance of the US SEC on Ethereum: Former director William Hinman stated in 2018 that Ethereum is not a security, and the regulatory agency has not formally retracted this stance;

The US Commodity Futures Trading Commission (CFTC) classifies Ethereum as a commodity: The US CFTC has long considered Ethereum a commodity, and recently in a civil enforcement action involving the cryptocurrency exchange KuCoin, the CFTC explicitly classified Ethereum as a commodity;

Decentralized and open protocol: The nature of Ethereum's architecture is decentralized, different from securities, as Ethereum operates on a platform where all information is publicly accessible;

The irrelevance of the consensus mechanism shift, Ethereum recently transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanisms, cited by the US SEC as a potential reason for reclassification. However, this change does not affect the core nature of Ethereum or the non-security classification of Ethereum.

Bitcoin Technical Analysis

CMTrade reports that Bitcoin's RSI is above the neutral zone of 50, with a positive MACD above the signal line, indicating a positive configuration.

Moreover, the price is higher than the 20 and 50-period moving averages, at $63,634 and $63,630 respectively.

"Our pivot is $62,510, our preference is, as long as $62,510 is the support, the upside prevails."

"Another scenario is below $62,510, with an expected test of $60,960 and $60,050."