Hong Kong Starts Trading Spot BTC-ETH ETFs This Week -

Hong Kong is preparing to officially launch the trading of Spot Bitcoin and Ethereum ETFs on April 30. The fund management companies involved include China Asset Management, Harvest Global, and Bosera-HashKey. China Asset Management manages over US$55 billion in assets on the mainland and US$3.6 billion in Hong Kong. Additionally, there are nearly 100 other ETFs in Hong Kong.

Bloomberg reports that investors from mainland China may not be able to invest in the Spot Bitcoin and Ethereum ETFs scheduled to launch on April 30th, even though the ETF issuers have close ties to mainland China.

Reuters reports a high possibility that the US SEC will not approve the Spot Ethereum ETF in May, with expectations for approval likely to be delayed until late 2024 or later due to unclear regulatory guidelines.

Franklin Templeton has listed the Franklin TR Ethereum ETF (EZET) on the Depository Trust and Clearing Corporation (DTCC) website, a key platform for securities transactions in the United States. However, it’s still pending on the US SEC decision on the Ethereum ETF.

Standard Chartered has shifted its view on the approval of the Spot Ethereum ETF from positive to negative, sharing the prediction that the US SEC may not approve those ETFs in May.

Analysts from Nansen point out that the recent downturn in Bitcoin prices is due to economic uncertainty rather than the sell-on-fact phenomenon from the latest round of Bitcoin halving. Historical statistics show that the 250-day period after the halving is typically the period of highest returns for Bitcoin compared to years without the halving.

Weekly Technical Analysis: 30 April – 6 May 2024

Bitcoin (BTC)

BTC continues to move sideways and is yet to establish new highs. There is still a chance of further downside to meet the previous low, roughly at US$59,600. This level could be used as a short-term profit-taking point, but if it does not support, the strategy is to delay investing any further. A clear upward trend should surpass the first resistance level at US$67,000.

Support: TH฿2,200,000 Resistance: TH฿2,500,000

Support: US$59,600 Resistance: US$67,000

ETH has shown stronger recovery momentum compared to BTC before experiencing selling pressure. The first resistance level is at US$3,400. If Ethereum manages to surpass this level, it may be a sign of short-term growth. However, if it fails to do so, there is a possibility of a downward move to meet the important support level at US$2,850. The trend remains in sideways action.

Support: TH฿106,000 Resistance: TH฿124,000

Support: US$2,850 Resistance: US$3,400

Bonk (BONK)

BONK value has surged by 30.53% in the past week, making it the best performer among memecoins. However, trading requires caution and discipline due to its high volatility. In the short term, it may breach the support level at TH฿0.00080. Considering taking short-term profits at the possible resistance level of TH฿0.00110.

Support: TH฿0.00080 Resistance: TH฿0.00110

Velo (VELO)

VELO has increased by 24.63% in the past week, showing a continuous positive trend. The next resistance target is at TH฿1.00. The trading strategy could include buying when the price comes down to the support level of TH฿0.60. As long as it remains above this level, the upward trend is expected to continue.

Support: TH฿0.60 Resistance: TH฿1.00

Trading and Investment Considerations For The Week

The US GDP announcement for the first quarter revealed lower than expected figures due to the overall economy slowing down. These drops may affect both the US stock and crypto markets. Investors should remain cautious.

Major tech companies like Apple and Amazon are announcing their financial statements this week. If the announcements are unfavorable, it could impact both the stock and crypto markets as well.

On May 1, the US Federal Reserve’s monetary policy committee will meet. While the market expects interest rates to remain as projected, investors should closely monitor the statements made by the Fed Chair regarding future monetary policies.

Additionally, the Non-Farm Payroll figures are set to be released on May 3 with an estimated decrease to 243,000 positions from the previous month’s 303,000. The unemployment rate is expected to remain at 3.8%. These figures will likely influence the movement of the US dollar versus other currencies.

This week, the crypto market may experience high volatility, especially considering that the market has not yet priced in the launch of Spot Bitcoin and Ethereum ETFs scheduled in Hong Kong. This is due to the smaller size of the Hong Kong stock market compared to the US, and major mainland Chinese investors are not allowed to participate. Moreover, the significant delays in large-scale investments in Bitcoin ETFs in the US under asset management companies like Blackrock and Fidelity have also contributed to the lack of new positive factors supporting the crypto market.

April was the worst-performing month for Bitcoin in several years, with monthly returns potentially turning negative for the first time in 8 months. It remains to be seen how the launch of Spot Bitcoin and Ethereum ETFs in Hong Kong will impact the crypto market. Therefore, expect negative fluctuations this week before any potential positive developments.

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Disclaimers

Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge and opinions are considered as contents that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor content presented constitutes investment advice.

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