Good morning, Asia. This is what news is doing in the markets:
Welcome to Asia Morning Briefing, a daily summary of the main stories during the US hours and an overview of the movements and market analysis. To obtain a detailed description of the US markets, see Cryptokook from Coindesk America.
On Wednesday in the USA, the stock exchange and securities commission announced that investors can now reimburse in kind for funds quoted in Bitcoin and Ether Caded (ETF).
The decision allows institutional merchants to create and exchange ETF actions directly in BTC or ETH, improving efficiency avoiding fiduciary conversions.
But in Hong Kong, this is nothing new. At the end of 2023, during the first days of the regulatory process to carry cryptographic ETF to the market (they were launched in April 2024), the Commission of Securities and Futures, the city market regulator, mentioned in a circular that would allow the reditions in the type.
Part of the reason why they were allowed was a technician: ETF emitters should be associated with licensed local encryption exchanges and use custody solutions. This was not the case in Ontario, Canada, who had the first cryptographic ETF, or in the United States in Hong Kong there was not the same debate about the state of Ether as security in the United States.
In contrast, American regulators fought with concerns about custody, risks against money laundering and possible market manipulation.
While the SEC never explicitly prohibited reimbursements in kind, ETF sponsors had to eliminate them from early presentations. The Commission favored an approach only in cash as a first cautious step, citing unproven operational processes and uncertainty about how to safely resolve large cryptographic transfers.
That position was not exempt from internal setback. The SEC Mark Uyeda commissioner publicly criticized the agency’s approach during the approval of January 2024 of Spot Bitcoin ETF.
He pointed out that ETFs based on basic products, such as those supported by gold, routinely use the channels in kind and question why cryptography was being treated differently.
Uyeda argued that the SEC could not explain why it considered the red -only “not novels” red redness, despite the clear deviation of ETF’s standard practice, and warned that the lack of reasoning established a worrying precedent.
The episode highlights how the Hong Kong regulator moved more clearly and cohesion from the beginning, since it took these products to the market.
When enabling reimbursements in kind from the beginning, and combining them with strict license and custody requirements, the SFC avoided internal contradictions and drift of the policy that defined the deployment of the United States.
However, there will be a side effect of all this: monitoring flows.
Crypto Data Aggregortor Sosovvalue, which provides daily flow updates for cryptographic ETFs, warns that “physical bitcoin subscriptions do not generate cash tickets for the [ETFs]So they cannot simply count on daily net input statistics. “
They have tried to create methods and models to work around this, but they say they have not been successful.
Then, unless ETF emitters in the US. UU. They publish the daily flow in cash and cryptography, the monitoring of this metric will be a problem. And it is important to track, since it shows the feeling of investors for assets.
Market movements
BTC: Bitcoin is quoted above $ 117,500 after a modest rebound, but the impulse is still weak as ETF outings persist, the whales get profits about $ 118K, and the winds against the winds against a firm dollar and the expectations of the Hawkish Fed, continue to limit the increase.
ETH: ETH is quoted above $ 3,700. “Ethereum has demonstrated in parallel with BTC since its beginning of being the second most proven network in battle, and the institutions very likely now see Ether the Token as an asymmetric formidable bet together with Bitcoin,” said March Zheng, general partner of Byzantine Capital, in a Coindesk note.
Gold: Gold recovered at $ 3,334 on Tuesday, breaking a loser streak four days before the Fed meeting, since merchants have a price in stable rates despite the weak work data of the USA.
Nikkei 225: Asia-Pacific markets opened to Mixta when the United States Secretary of Commerce, Howard Lutnick, confirmed that Trump’s deadline for Trump’s Friday will continue as planned, with the Nikkei 225 Flat from Japan outdoors.
S&P 500: US actions closed the lowest Tuesday, with the S&P 500 finishing a six -day record streak, since investors weigh the profits, economic data and the next Fed rate decision.
In another part of Crypto:
- Cash Tornado Roman Storm developer will not take the position, says lawyers (Coindesk)
- Cornell Tech professor warns the agents of AI and the crypto spell (Bloomberg)
- Senator Lummis presents Bill that requires Fannie Mae and Freddie Mac considering Crypto as an asset for mortgages (block)
