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Crypto Futures ETFs Raise More Than $73M Ahead Of Hong Kong Launch – Bitcoin News
Hong Kong’s first crypto-based exchange-traded fund (ETF) has attracted over $73 million ahead of its debut on the region’s bourse. The launch of the two ETFs tracking US-listed cryptocurrency futures comes despite the industry’s current woes.
Hong Kong Launches Bitcoin and Ether Futures ETFs Amidst Crypto Winter
Two ETFs that track crypto futures raised a total of $73.6 million before debuting on the Hong Kong stock exchange on Friday, with the largest raising $53.9 million, according to Reuters. The news agency noted that the launch is at odds with the ongoing unrest in the sector.
The funds, offered by CSOP Asset Management, invest in bitcoin (BTC) and ether (ETH) futures listed on the CME exchange in the United States, the only cryptoassets currently permitted by Hong Kong’s Securities and Futures Commission (SFC). Commenting on the development, Yi Wang, Head of Quantitative Investments at CSOP, stated:
Following the recent liquidity issues affecting some of the crypto platforms, our two crypto futures ETFs demonstrate that Hong Kong remains open to the development of virtual assets.
This year’s downturn in the crypto market led to a significant drop in the prices of major cryptocurrencies with the largest coin by capitalization, BTC, losing more than 70% of its value since its all-time high just over a year ago.
The rush was accompanied by a series of failures in the industry, the latest of which was the collapse of FTX, a leading crypto exchange with global reach, which declared bankruptcy in mid-November amid liquidity problems.
Weeks before the crash, the SFC announced in October its intentions to launch a consultation on whether to allow retail investors to trade cryptocurrencies and ETFs. The watchdog’s first proposal was to limit participation to only professional investors.
Then, in November, the commission’s deputy chief executive Julia Leung was quoted as saying that the SFC is “actively looking” at establishing a regulatory framework that would allow trading of crypto futures exchange-traded funds.
“As the ETFs do not invest in physical bitcoin, and are traded on regulated US and Hong Kong exchanges, there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms,” Yi Wang now elaborated.
What do you think about Hong Kong’s debut of ETFs for crypto futures in the current market? Tell us in the comments section below.
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