Asia Still Attractive to Crypto Players, But US Sees Increased Interest Post-ETF Approval + More Crypto News

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Asia Still Attractive to Crypto Players, But US Sees Increased Interest Post-ETF Approval

Singapore and Hong Kong are still very attractive to global crypto players flocking to Asia, despite the launch of spot Bitcoin exchange-traded funds (ETFs) in the USA in January, according to the South China Morning Post. But the launch has made the US more appealing than before.

Regulatory crackdowns worldwide, especially in the US, have led many companies to Singapore and Hong Kong over the past couple of years.

The two countries have been working on becoming global crypto hubs.

And the ETF launch has indeed revived interest in the US crypto market. But the country will not see the crypto players’ return easily.

According to Danny Chong, co-founder of tracking protocol Tranchess,

“There will be returns given Silicon Valley and digital hubs are still quite strong in the US. But most of the people are taking a wait-and-see attitude before making a beeline back into the US.”

Therefore, Asia will continue to have “a bit more advantage or a smooth path, and having people working in this space,” Chong added.

Furthermore, Hong Kong is also likely to see a spot Bitcoin ETF within a few months. Major asset management company Harvest Fund Management has reportedly submitted the first application to the Securities and Futures Commission of Hong Kong.

Tascha Punyaneramitdee, CEO and founder of INIT Capital, an investor in early-stage tech companies, commented that,

“Several crypto players’ operations are split between the US and Asia because each market fulfils a different need, said. While many crypto developers are moving to Asia because of friendlier regulations and new funds being created in the region, the US has a strong existing network and liquidity that make it attractive for firms to maintain a presence there.”

Punyaneramitdee noted that the significant movement is still more towards Asia. However, many companies, funds, and projects want to have “at least some presence in the US to make sure they can tap” into the country’s network.

Tokenization is Future of Finance, Despite Slump

The real-world asset sector (RWA) has had a challenging few months. It shrunk by almost 37% since its peak in October, said in an email Katie Evans, Chief Business Development and Communications Officer at blockchain platform Swarm.

The slump results from investors’ pivot towards riskier and higher-yielding areas of the market, such as decentralized finance (DeFi) lending and liquid restaking.

“Some have also suggested that the RWA sector won’t take off again until the next bear market.”

As Evans explains, investors seek out riskier assets to maximize their gains when markets are riding high. Hence, when markets go low, they seek out safe havens.

However, Evans stated that,

“As a pioneer in RWA, the recent downturn has done nothing to shake our conviction in the concept of tokenization. We believe that it is the future of finance and that widespread adoption is a matter of when, not if.”

Furthermore, new economics are needed on chain as the market matures, Evans argues. Investors will need more stable and uncorrelated collateral on chain during a bull run. This will help them escape volatility when needed.

Per Evans,

“We also believe RWAs can be leveraged ahead of the next bull market taking off, allowing investors to borrow against their tokenized stocks to ape more into crypto.”

Furthermore, Swarm expects the stablecoin market to increase as crypto prices rise. “The former provides the oxygen that fuels more investors to move on chain,” said Evans.

Bitfinex Reveals the Launch of TorogozDev’s New Lightning Node in El Salvador

In other crypto news, the non-profit educational program TorogozDev has launched a new Lightning node in El Salvador.

TorogozDev provides technical training in Bitcoin and Lightning Network development in the country. The program is sponsored by Bitfinex,

Per the press release, the new Lightning node is a milestone for the project. It also aligns with El Salvador’s role in embracing Bitcoin.

Notably, it said,

“The introduction of the node also assists in further strengthening the accessibility to the global Bitcoin network, and contributes to the security and decentralisation of the network.”

Paolo Ardoino, Chief Technology Officer of Bitfinex, argued that this is not just a technological advancement. “It’s a step forward in realising the true potential of borderless money in a nation that has boldly integrated Bitcoin into its financial system.”

TorogozDev co-founder Ishi added,

“This new node will enable El Salvador to actively strengthen and further decentralise the Bitcoin network, and contribute to the network of Lightning nodes deployed worldwide.”

Ishi said that the team wants to facilitate access to local talent and professionals to promote and enable Bitcoin adoption in El Salvador.

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