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Bitcoin, Ether Drop After Lackluster Hong Kong ETF Debut; Alliance Resource generates $30M in BTC, and More Crypto News

Fernanda T
Latest News
April 30 2024 10:27AM

Modest launch of Bitcoin and Ethereum ETFs in Hong Kong

The introduction of Bitcoin and Ethereum ETFs in Hong Kong began with below-expected performance, reaching a trading volume of approximately $11.19 million (87.58 million HKD), according to the Hong Kong Stock Exchange. These numbers fall well below the initial expectations, which predicted over $100 million. In comparison, the debut of ETFs in the US saw a volume of $4.6 billion. On the first day, six ETFs were launched, with the “ChinaAMC Bitcoin ETF” and its Ethereum ETF leading in volume among the products. Despite the slow start, there is an expectation that these ETFs will have a significant impact on the market.

In reaction to the low acceptance of the newly listed Hong Kong ETFs linked to Bitcoin and Ethereum, the price of Bitcoin (COIN:BTCUSD) plunged by 4.2%, from $63,300 to $61,190, in the last 24 hours. Meanwhile, Ethereum (COIN:ETHUSD) dropped by 6.3%, to $3,012.

Coal miner utilizes excess energy to generate $30 million in Bitcoin

Alliance Resource Partners (NASDAQ:ARLP), a coal miner listed on NASDAQ, announced it has generated $30 million in bitcoins from unused energy at its River View mine in Kentucky. During an earnings teleconference, the company revealed it holds 425 BTC, acquired through a pilot project exploring underutilized electricity. CFO Cary Marshall explained that the company does not buy bitcoins but mines them using excess capacity, leasing space to other miners in an in-house data center, optimizing low energy costs.

Mixed movement in Bitcoin ETFs in the US

On April 29, spot Bitcoin ETFs in the United States experienced a day of mixed results, with net outflows exceeding $51.5 million. Notably, the ARK 21Shares Bitcoin ETF (AMEX:ARKB) recorded outflows of $31.34 million, while the Grayscale ETF (AMEX:GBTC) had outflows of $24.66 million. The Fidelity Wise Origin Bitcoin Fund (AMEX:FBTC) registered a net outflow of $6.85 million. However, some ETFs like the Bitwise Bitcoin ETF (AMEX:BITB) saw net inflows of $6.84 million, while the Valkyrie Bitcoin Fund (NASDAQ:BRRR) and the Franklin Bitcoin ETF (AMEX:EZBC) raised $2.67 million and $1.82 million, respectively.

Microstrategy acquires more Bitcoin in the first quarter despite financial challenges

In the first quarter, MicroStrategy (NASDAQ:MSTR) purchased 25,250 BTC for $1.65 billion, increasing its total holdings to 214,400 BTC, highlighting its ongoing commitment to Bitcoin. The company reported its total holdings at a cost of $7.54 billion, or $35,180 per bitcoin, on April 26. In the first quarter, the company reported total revenue of $115.2 million, with a 5.5% decrease from the previous year. The company recorded a net loss of $53.1 million, compared to a profit of $461.2 million in the same quarter of the previous year. Its operating expenses increased by 152.8%, reaching $288.9 million. Despite this, the gross margin was 74.0%.

Bitcoin miners require more computational power than ever

For the first time, Bitcoin miners (COIN:BTCUSD) require more than 1 EH/s of daily processing power to mine a single coin. The indicator known as “Hashcoin” reached a new record, reflecting the daily hash rate needed to produce 1 BTC. The increase in this indicator can be attributed to the latest Halving, which occurred in April, reducing block rewards by half, leading miners to demand more power to maintain production.

Ripple and Hashkey DX form alliance to boost blockchain in Japan

Ripple (COIN:XRPUSD) has joined forces with Tokyo-based Hashkey DX to introduce the XRP Ledger to the Japanese market, focusing on transforming blockchain into enterprise solutions, especially in supply chain. The strategic partnership, including SBI Ripple Asia, aims to leverage Hashkey DX’s expertise in implementing financial solutions. SBI Holdings stands out as the first to adopt this technology for supply chains in Japan, demonstrating the growing interest and potential of blockchain in finance and global industries.

Shiba Inu ecosystem updates: integration and new functionalities

Ragnar, a Shiba Inu (COIN:SHIBUSD) community administrator, highlighted the synergy between ecosystem tokens in a post on X, focusing on the imminent Layer 3 privacy blockchain (L3) of Shibarium. The post, made by Buzz from K9 Finance DAO, explores how the Treat token (COIN:TREATTUST) will be used alongside Bone (COIN:BONEEUSD), which serves as a gas token and reward for validators on Shibarium L2. Additionally, the recently launched Knine acts as a governance token and staking infrastructure, strengthening security and participation in the network.

Controversy in EigenLayer airdrop reveals community discontent

The recent announcement of the EigenLayer protocol “stakedrop,” ranking second in total locked value with $15.67 billion, has generated discontent among users. Some expressed frustration due to the brief snapshot window and severe geographical restrictions imposed. Despite the promise to distribute 15% of the 1.67 billion EIGEN tokens to the community, many considered the initial allocation of 5% insufficient and criticized the non-transferable structure of the tokens and the linear distribution, which favors large holders. While some defend the linear approach as fair, others find the geographical restrictions and initial allocation questionable, triggering intense debate within the community.

Animoca Brands adopts Bitcoin and launches Opal Protocol

Animoca Brands, a Hong Kong-based gaming company, announced its foray into the Bitcoin ecosystem, supporting the Opal Foundation. With plans to become the “largest Web3 ecosystem” in gaming, education, and culture, the company is introducing the Opal Protocol and the BLIF token. Yat Siu, co-founder of Animoca, highlighted Bitcoin’s evolution with the Ordinals, pointing towards a future where digital culture and intellectual property coexist. The official launch of the Opal Protocol and the BLIF airdrop will be announced in the future.

Terraform Labs and Do Kwon seek reduction of fine to $1 million

Lawyers for Terraform Labs and Do Kwon argue that a $1 million fine is fairer than the $5.3 billion proposed by the US SEC. The SEC accused the company and Kwon of fraud related to the algorithmic stablecoin Terra USD (UST), which collapsed in 2022, resulting in significant losses. A jury recently found Terraform and Kwon liable for civil fraud, raising questions about violations of federal securities laws.

Samourai Wallet co-founder pleads innocent to federal charges

Keonne Rodriguez, co-founder of Samourai Wallet, pleaded innocent to federal charges related to creating a tool aimed at complicating the tracking of cryptographic transactions. The charges include conspiracy to launder money and operating an unlicensed money transmission business. Rodriguez’s arrest is part of a broader crackdown on cryptocurrency mixers, tools that obscure the origins of digital token transactions. He was released on $1 million bail.