In the fourth week of October, the virtual asset market posted limited gains on news that a U.S.-China summit was set and on expectations of interest rate cuts. Bitcoin closed at $110,607, up 1.4% from a week earlier, while Ethereum ended at $3,874, down 1.6%. The main driver of the market over the week was the confirmation of the U.S.-China summit. As U.S. President Trump and Chinese President Xi Jinping agreed to meet on the 30th on the sidelines of the APEC summit, expectations for easing tensions between the two countries spread.
By contrast, the failure of negotiations to end the U.S. government shutdown and a rebound in Government Bonds yields capped the market's rise. Short- and long-term yields turned higher for the first time in four sessions, with the 10-year yield again topping the 4% level. With the dollar slightly appreciating, the rebound in yields spurred profit-taking by some investors, limiting Bitcoin's upside. Ahead of the release of the September consumer price index (CPI), which was delayed by the shutdown, uncertainty over the Federal Reserve's currency policy path remained.
◇ Hong Kong launches first Solana ETF in Asia's financial market
Hong Kong has officially approved the first spot Solana (SOL) exchange-traded fund (ETF) in Asia's financial market, further strengthening its position as a digital asset finance hub. The Securities and Futures Commission (SFC) approved the spot Solana ETF on the 22nd (local time), a move ahead of the United States that is drawing global attention.
China Asset Management will run the ETF, which is scheduled to list and begin trading on the Hong Kong Exchanges and Clearing (HKEX) on the 27th. OSL Exchange will operate the ETF's virtual asset trading platform, and the manager will directly buy and sell Solana coins through OSL to fully back the fund with physical Solana holdings. The minimum investment amount is set at about $100, lowering the barrier to entry for both institutional and retail investors.
China Asset Management (Hong Kong) already manages spot Bitcoin and Ethereum ETFs, and the addition of a Solana ETF is expected to meet demand from institutional and retail investors seeking to diversify investment options beyond major tokens. The approval is considered a significant expansion of Hong Kong's "A-S-P-I-Re" plan, a roadmap for developing the digital asset ecosystem released in February this year. In April 2024, Hong Kong also became the first in Asia to approve spot Bitcoin and Ethereum ETFs, and it is maintaining that momentum with the Solana ETF approval.
◇ Fed creates "skinny master account," a dedicated account for stablecoins
The U.S. Federal Reserve (Fed) is pursuing a plan to allow a "restricted access account," also known as a "skinny master account," which would grant limited access rights to any institution that meets legal requirements. This is seen as a major policy shift that would significantly open direct access to the Fed's payment network for Fintech companies and stablecoin issuers.
Federal Reserve Governor Christopher Waller proposed the idea in a keynote speech at the "Fed Payments Innovation Conference" on the 21st. Unlike existing master accounts, this account would not provide key functions such as borrowing from the Fed but would allow access to the payment network. Waller said, "The legal eligibility requirements are not changing, and anyone who qualifies can apply for the account." The Fed expects this to expand participation in the payment network by a range of Fintech financial institutions, including Fintechs, stablecoin issuers, and other payments companies.
Regarding the decision, Waller said, "Our stance is 'don't avoid disruption (disruptive innovation), embrace the disruption.' We no longer view the DeFi (decentralized finance) industry with suspicion and wariness," expressing hope that this will be a key turning point in shifting the Fed's previous stance of looking at virtual assets with skepticism.
Xangle researcher Kim Jun-seong said, "Confirmation of the U.S.-China summit is a positive factor for short-term market stability, but the rebound in interest rates and delays in shutdown negotiations have rekindled uncertainty," adding, "With CPI and the FOMC ahead, a wait-and-see mood is likely to continue, and short-term price action will depend on the direction of macro indicators."
☞About CrossAngle
It provides essential on-chain data-based operating solutions and trust-based community-building services for companies and foundations adopting Web3. It operates the crypto data intelligence platform Xangle, and the Xangle Research Team creates content to show trends in the virtual asset investment industry based on global virtual asset information and data.