🐉 Hong Kong About to Dive in the ETF Market!

Let's Dive Into It!

Happy Monday dear subscribers! After the Chinese Metaverse, it’s time for Hong Kong to move!

In today's bulletin, we are covering:

Nice save from the Mid Caps Index which managed to defend the main horizontal support on the $4,25 support. The bounce breached up the local downtrend resistance too. Not consolidating, great first step:

ETH not giving up either, after the breakdown, bounced on local support and it's approaching to the local downtrend resistance:

Harvest Fund Management Applies for Bitcoin ETF in Hong Kong

Harvest Fund Management, a major Chinese asset manager, has reportedly submitted an application for a spot bitcoin exchange-traded fund (ETF) in Hong Kong.

The move comes amid growing interest in spot cryptocurrency ETFs in the region, with around 10 fund companies exploring potential launches.

  • Harvest Fund Management applies for a spot bitcoin exchange-traded fund (ETF) in Hong Kong, aiming to launch after the Lunar New Year holiday.

  • Hong Kong sees increasing interest in spot cryptocurrency ETFs, with around 10 fund companies exploring potential launches.

  • Several firms, including Harvest Global Investments, RD Technologies, and VSFG, show interest in stablecoin-related trials in Hong Kong.

  • VSFG expects the stablecoin sandbox process to commence in the first quarter of 2024, aiming to support Hong Kong as an international virtual asset center.

  • The Hong Kong Monetary Authority is preparing for the launch of the stablecoin sandbox and will announce relevant details in due course.

  • In December, the HKMA stated that stablecoin issuers would require a license if their stablecoins reference the value of fiat currencies in Hong Kong, highlighting the importance of stablecoin stability in the financial ecosystem.

Additionally, there is increasing interest in stablecoins in Hong Kong, with firms like Harvest Global Investments, RD Technologies, and Venture Smart Financial Holdings Ltd. (VSFG) engaging in discussions with the Hong Kong Monetary Authority regarding stablecoin trials.

BlackRock iShares Bitcoin ETF Hits $2 Billion AUM Milestone

The BlackRock iShares Bitcoin ETF (IBIT) has become the first among recently launched spot bitcoin products to achieve $2 billion in assets under management (AUM).

Investors added approximately $170 million to IBIT on Thursday, pushing its total tokens held to 49,952 bitcoin (BTC). With the price of bitcoin rising above $40,000 early Friday, IBIT's AUM crossed the $2 billion mark.

  • BlackRock iShares Bitcoin ETF (IBIT) reaches $2 billion in assets under management (AUM) milestone.

  • Investors add $170 million to IBIT on Thursday, with the fund purchasing nearly 4,300 bitcoin (BTC).

  • Total tokens held by IBIT now stand at 49,952 BTC.

  • IBIT's AUM surpasses $2 billion mark as bitcoin price rises above $40,000.

  • Ranking third among all new ETFs launched in the past year, IBIT is expected to potentially overtake other funds in asset gathering.

Now ranking third in asset gathering among all new ETFs launched in the past year, IBIT is poised to potentially surpass other funds in the near future.

ONDO Finance

This Monday we bring under the spotlight another RWA project, in this case, it’s ONDO Finance.

As most RWA projects they offer products from the traditional finance (TradFi) ecosystem, so far they provide access to US treasuries with OUSG ( 4.73% API), USD yield when using USDY (5.10%) and US Money Markets Funds if you choose OMMF (4.73% APY).

Each one is different and there are some peculiarities about them:

USDY is accessible to non-US individual and institutional investors and is transferable on-chain 40-50 days after purchase.

OUSG majority will be in the iShares Short Treasury Bond ETF (NASDAQ: SHV). having also a small portion of USDC and USD for liquidity purposes.

Distributions for OMMF investors will be "airdropped" daily in the form of new tokens, and tokens will be purchasable and redeemable for exactly $1.

(ONDO Finance will take a 0.15% on different fees across the three products)

Their products are available directly in different blockchains such as:

  • Ethereum

  • Mantle

  • Solana

  • Polygon

  • Injective

The $ONDO token has a max total supply set to 10,000M. The circulating supply at the moment is 1,376M. And it will be changing according to the scheduled vesting unlock.

The project has been funded by some prominent Venture Capital (VC) firms like Founders Fund, Pantera Capital or Coinbase Ventures, as well as a Market Maker like Wintermute among others.

That’s how far we are going into them, if you want to research more about the project or their products use their website and Twitter

How do percentages work?

One of the most important aspects when trading in the market is understanding how percentages work and how a deficient risk management can leave us out of the game.

When we start a trade, we set a profit target but not always a loss target, commonly referred to as a stop loss, which is just as important if not more so than the former. Exiting a losing position keeps us alive, both financially and in terms of our ability to continue trading.

The famous phrase "cut losses quickly and let profits run" refers to the latter, as deciding to stick with an unfavourable position risks it continuing to decline and becoming even more negative, as Livermore said: "One should fear that a loss may become much larger." 

Now, there are many ways to calculate a stop loss (we won't delve into that as it would warrant an article of its own), but it's important to consider it not only in absolute terms but also in relative ones, and this is where I want to focus. Let's look at the following chart:

In this illustration, we can observe that as the percentage of loss increases, the percentage of recovery (or bounce) needed also increases, more and more, meaning it's not linear. For instance, in the case of a 50% decrease, if Bitcoin falls from 40K to 20K, we would require a 100% increase from 20K to return to the initial point of 40K.  

This is extremely important when trading because, as we can see, a 97% drop like the one that occurred with $SOL, for example (from 259 USDT to 8 USDT), would require a 3146% increase to return to its all-time high (ATH) of 259 USDT (currently trading at 97 USDT, accumulating +1120%).  

To sum up, I want to emphasise the importance of never losing sight of percentages, controlling losses through good risk management in a position and how a significant drawdown can keep us out of the game for a long time and with much less capital… if we survive!

Moving Averages power:

Bitcoin price predictions:

Crypto Trader life:

Don’t sleep on this market, lots of opportunities to come, see you next week!