Hong Kong’s digital asset exchange-traded funds (ETFs) have reached over $1.532 billion in assets under management (AUM), according to Peishan Li, CEO of Hang Seng Investment Management.
While no immediate plans are in place to create an ETF focused on virtual assets, the firm is closely monitoring the development of related asset classes and exploring the integration of virtual currencies into existing investment products.
The AUM of Hong Kong crypto ETFs has grown by 80% since December 2022, with a daily trading volume of $1.7 billion HKD, accounting for 6% of the total daily trading volume of all stocks on the Stock Exchange of Hong Kong.
Binance co-founder warns of altcoin downturn
Yi He, co-founder of Binance, issued a cautionary note against blindly following trading signals that chase higher prices.
He highlighted the significant decline of major altcoins, which fell by 80% to 90% recently.
The warning came shortly after Binance listed MAV, a permissionless decentralized finance token, offering perpetual contracts at 20x leverage.
Despite the slump in altcoin prices, Yi He emphasized the importance of conducting thorough research and highlighted that token prices are influenced by both buyers and sellers, urging investors to be mindful of the associated risks.
Poly Network faces another hack
Chinese DeFi protocol Poly Network experienced yet another security breach, affecting multiple blockchains and approximately 57 different asset types.
Hackers exploited a smart contract vulnerability, enabling them to mint a vast number of tokens from Poly Network’s multi-chain pools.
Although an estimated $42 billion worth of tokens were generated, only $5 million has been reportedly cashed out.
The total value locked on Poly Network dropped from $277 million to $176 million following the attack.
This incident follows a previous hack in August 2021, where hackers stole over $600 million but returned most of the stolen funds later.
Hong Kong establishes Web3 Task Force
Hong Kong announced the formation of a Web3 Task Force led by Financial Secretary Paul Chan Mo-po.
The task force consists of 15 industry veterans, regulators, and government officials who will work for two years to facilitate sustainable and responsible development of emerging Web3 technologies in Hong Kong.
The goal is to explore the application of blockchain technology in various sectors, such as finance, transactions, and business operations, while ensuring suitable regulations are in place.
Animoca Brands’ CEO Yat Siu was appointed to the task force, emphasizing the vibrant nature of the crypto industry in Asia and the Middle East.