As part of its efforts to become a regional hub for digital assets, Hong Kong is considering allowing spot crypto exchange-traded funds (ETFs) that would allow retail investors to directly buy and sell cryptocurrencies.

Jack Dorsey’s Bitcoin-focused fintech firm Block has reported a profitable third quarter, exceeding analysts’ forecasts with $5.62 billion in revenue, largely driven by strong performance in its Cash App and Square services.

Solana-based non-fungible token (NFT) marketplace Magic Eden has announced it’s collaborating with the company behind the renowned NFT collections Bored Ape Yacht Club and Cryptopunks, Yuga Labs, to launch a marketplace for Ethereum NFTs honoring creator royalties.

Top stories in the Crypto Roundup today:

• Hong Kong Eyes Spot Crypto ETFs
• Block Posts $5.6 Billion Revenue, $45 Million Bitcoin Gain in Q3
• Magic Eden and Yuga Labs Team up to Launch ETH NFT Marketplace With Creator Royalties
• Centralized and Decentralized Exchanges Remain Plagued by Security Breaches

Hong Kong Eyes Spot Crypto ETFs

As part of its efforts to become a regional hub for digital assets, Hong Kong is considering allowing spot crypto exchange-traded funds (ETFs) that would allow retail investors to directly buy and sell cryptocurrencies.

This was revealed by Julia Leung, the CEO of the Securities and Futures Commission (SFC), who noted access to crypto ETFs would be subject to regulatory approval. Per Leung, Hong Kong is “happy to give it a try as long as new risks are addressed.”

Both Hong Kong and the U.S. currently allow investors to buy and sell futures-based crypto ETFs, but these products haven’t attracted much interest from fund investors. The three such ETFs listed in Hong Kong - Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures ETFs - have a total of around $65 million in assets

The demand for spot ETFs, which would allow retail investors to directly trade cryptocurrencies, is uncertain, although Bitcoin’s price has recently surged following rumors that suggested BlackRock’s proposed spot Bitcoin ETF had been approved by the U.S. Securities and Exchange Commission (SEC).

In June, Hong Kong introduced a specific regulatory framework for virtual assets, aiming to revive its reputation as a leading financial hub. The rules seek to attract firms while also boosting investor protection.

The SFC’s digital asset regulations allow retail investors to trade tokens on licensed exchanges, and mandatory rules for stablecoins are due by next year. Hong Kong’s officials are also exploring tokenization, recently updating regulatory guidance to help tokenized product offerings for retail investors.

Block Posts $5.6 Billion Revenue, $45 Million Bitcoin Gain in Q3

Jack Dorsey’s Bitcoin-focused fintech firm Block has recently reported a profitable third quarter, exceeding analysts’ forecasts with $5.62 billion in revenue, largely driven by strong performance in its Cash App and Square services.

The company saw $45 million in profit from its Bitcoin investments thanks to a recent rise in the cryptocurrency’s price. In a letter to shareholders, Dorsey highlighed the company’s strategic direction, especially with Square, along with key financial metrics.

These included the approval of a $1 billion share buyback program to mitigate the dilutive effect of stock-based compensation. For the third quarter of 2023, Block reported a gross profit increase of 21% to $1.90 billion.

Bitcoin transactions constituted about 43% of Block's total revenue, with the firm seeing a 22% increase in Bitcoin gross profit year-over-year, earning $45 million. These figures were a result of the firm selling $2.42 billion worth of Bitcoin through its Cash App.

Block reported no impairment losses on its Bitcoin investments since the last quarter. The firm’s investment in Bitcoin had a $102 million carrying value as of September 30. Its fair value, determined by market prices, was $216 million.

Magic Eden and Yuga Labs Team up to Launch ETH NFT Marketplace With Creator Royalties

Solana-based non-fungible token (NFT) marketplace Magic Eden has announced it’s collaborating with the company behind the renowned NFT collections Bored Ape Yacht Club and Cryptopunks, Yuga Labs, to launch a marketplace for Ethereum NFTs honoring creator royalties.

The marketplace is set to launch “by the end of the year,” with the announcement for it coming one year after Magic Eden announced that its own platform would make royalties optional for NFT sellers.

Yuga Labs decided to partner with Magic Eden after announcing in August that it would end its relationship with OpenSea by February 2024 after the marketplace changed to a royalty-free model, which led to a drop in Yuga Labs’ revenue.

Centralized and Decentralized Exchanges Remain Plagued by Security Breaches

In 2022, a number of significant security breaches highlighted the persistent vulnerabilities of centralized exchanges, with malicious parties taking advantage of weak security measures. These breaches have continued into 2023, with approximately $117 million in user funds being stolen from centralized exchanges.

Moreover, decentralized exchanges (DEXs) were also significantly affected by security breaches, with nearly half (44%) experienced hacks in the past, and 8 suffering exploits within the last year.

Find out more via CCData’s latest Exchange Benchmark, the industry standard for ranking the risk associated with the digital asset exchange sector.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.