Hong Kong to List First Crypto Futures ETFs

Share IT

Key takeaways:

  • The ETFs, one tied to Bitcoin futures and the other to Ether futures traded on the CME, is being introduced by CSOP Asset Management.
  • The bigger of the two, CSOP Bitcoin Futures ETF (3066. HK), took in $53.9 million, according to the manager.

 Asset management company CSOP is introducing new exchange-traded funds (ETF) for bitcoin and ether futures that will be formally registered on the Hong Kong Stock Exchange on December 16. According to CSOP, they will be the very first listed bitcoin and ether futures ETFs offered in Asia.

The ETF issuer noted in a statement that the initial investments in its CSOP Bitcoin Futures ETF were $53.8 million, while those in its CSOP Ether Futures ETF totaled $19.7 million. To track the value of the assets, both ETFs will be managed to invest in Bitcoin and Ether futures listed on the CME.

The two crypto futures ETFs show that Hong Kong is still receptive to the growth of virtual assets, despite the recent liquidity problems concerning some of the crypto platforms.

The official press release states that Investors can easily purchase and sell the recently listed virtual assets futures ETFs through conventional brokerage or investing accounts with a minimum investment of about USD100. 

To enable flexibility in portfolio composition, rolling strategy, and managing of any market disturbances, active investment techniques are used. Additionally, an independent custodian maintains the fund assets of virtual asset futures ETFs under strict control and exceptional protection.

Authorities in Hong Kong have previously stated their goal to legalise retail cryptocurrency trading and create a supportive regulatory regime in the sector in March 2023.

The Hong Kong government issued a statement in October outlining its strategy for the development of virtual assets (VA) in Hong Kong. The section provides a summary of the Government’s approach and stance with regard to developing a vibrant VA sector and environment in Hong Kong.

A CME Group employee named Tim McCourt claims that the registration of the ETFs demonstrates “growing client appetite for exposure to Bitcoin and Ether.” According to McCourt, the launch of the funds might present both institutional and ordinary investors with fresh options.

Share IT
Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Can’t find what you’re looking for? Type below and hit enter!