Hong Kong Approves Crypto ETFs; Bitcoin Miners Predicted to Offload Post-Halving, Hacker Jailed for Smart Contract Breaches
Summary:
Hong Kong has approved spot crypto exchange-traded funds for Bitcoin and Ether, with three local issuers set to launch their ETFs. Meanwhile, analysts predict Bitcoin miners could potentially offload $5 billion worth of Bitcoin within months post-halving. In related news, a software engineer received a three-year prison term in New York for hacking smart contracts on two decentralized exchanges.
Hong Kong has recently added to the growing list of nations that have endorsed spot cryptocurrency exchange-traded funds (ETFs) for Bitcoin and Ether. Analysts suggest that Bitcoin miners might liquidate around $5 billion of Bitcoin within four to six months post-halving, an act which could negatively impact altcoin markets. In other news, a New York court has sentenced a software engineer, guilty of hacking smart contracts on two decentralized exchanges, to a three-year prison term.
Hong Kong has just approved the initiation of spot exchange-traded funds (ETFs) for Bitcoin (BTC) and Ether (ETH), with the relevant permissions being granted to at least three local issuers. Offshore Chinese asset managers which include Hong Kong affiliates of Harvest Fund Management, Bosera Asset Management and China Asset Management, are all set to roll out their spot Bitcoin and Ether ETFs shortly. As per reports, Hong Kong's Harvest and Bosera have received provisional approval from the Securities and Futures Commission (SFC), enabling them to inaugurate the ETFs.
There are indications, from a market analyst, of a likely substantial Bitcoin exodus from miners in the months succeeding the halving, mirroring patterns seen in prior cycles. Post-halving, Bitcoin miners may offload around $5 billion worth of BTC, projected Markus Thielen, head of research at 10x Research, in an analyst note dated April 13. Thielen also suggested that Bitcoin's sideways movement over the next few months could be attributed to the potential extended sell-off period lasting four to six months, in line with past halvings.
2016 and 2019 saw Bitcoin prices in a plateau between $9,000 and $11,500 for five months subsequent to the halving. This year's halving is due to occur around April 20, hence any substantial Bitcoin value increase might be delayed until around October, assuming historical trends are repeated.
A New York district court handed down a three-year prison sentence to Shakeeb Ahmed, a computer engineer found guilty of flash loan attacks on two decentralized exchanges. Ahmed will also be subjected to three years of supervised release. U.S. Attorney Damian Williams declared this case the first conviction for a smart-contract hack. Ahmed was further mandated to forgo $12.3 million along with a considerable amount of his crypto holdings. The forfeited amount will partly contribute to a $5 million restitution payment for the upset exchanges. Ahmed was implicated in the flash loan attacks on Crypto Exchange and Nirvana Exchange in 2022, leading to the NIRV stablecoin's decoupling from the U.S. dollar and an 85% drop in the value of its native ANA token.
According to the court, Ahmed concealed the illegally obtained funds by employing Monero, foreign crypto exchanges, and crypto mixers.
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Report by Geraint Price, Sam Bourgi and Felix Ng.
Published At
4/15/2024 3:45:49 PM
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