Hong Kongโs Bitcoin Futures ETF Sees Assets Grow to $100 Million
Hong Kongโs largest bitcoin futures exchange-traded fund has experienced a five-fold increase in assets under management over the past five months, reaching just over $100 million. This surge can be attributed to local investors who are capitalizing on the rally of the worldโs most well-known cryptocurrency.
Latecomer to Crypto Trading
Hong Kong entered the crypto trading scene relatively late, approving its first three cryptocurrency futures ETFs in late 2022.
Increased Demand in February
CSOP Asset Management, the firm managing the CSOP Bitcoin Futures ETF, reported a significant growth in demand during February. This was driven by the approval and launch of spot bitcoin ETFs in the United States, which has encouraged investors who believe that the limited supply of bitcoin will drive prices higher.
Alessandro Zhu, Deputy Head of Fixed Income at CSOP Asset Management, highlighted that although cryptocurrency trading is prohibited in mainland China, offshore Chinese financial institutions can invest in bitcoin ETFs in Hong Kong. The remarkable outperformance of bitcoin compared to Hong Kong stocks has also contributed to increased demand.
Rapid Growth for CSOP Ether Futures ETF
The assets under management for CSOP Ether Futures ETF have also experienced significant growth this year, doubling since the beginning of the year.
Surge in Volumes
The average daily turnover for the CSOP Bitcoin Futures ETF has surged this year. It has reached $2.8 million compared to $0.97 million last year, now on par with turnover in some major Hong Kong property giants like Wharf (Holdings).
Spot Bitcoin ETF Approval Expected
Many market participants anticipate that Hong Kong will approve its first spot bitcoin ETF this year. Officials are keen to develop the city as a hub for virtual assets, and there have been numerous applications for spot bitcoin ETFs submitted to the Hong Kong Securities and Futures Commission in recent months.
โHong Kongโs bitcoin ETF is showing promising signs with a large number of (spot bitcoin ETF) applications to Hong Kong Securities and Futures Commission in the past few months,โ said Kennix Chan, Executive Director of Victory Securities.
Hot Take: Hong Kongโs Bitcoin ETF Surges Amidst Growing Demand
Hong Kongโs bitcoin futures exchange-traded fund has experienced a remarkable growth in assets under management, reaching over $100 million. This surge is driven by local investors who are capitalizing on the rally of bitcoin, as well as the approval and launch of spot bitcoin ETFs in the United States. Offshore Chinese financial institutions are also taking advantage of the opportunity to invest in bitcoin ETFs in Hong Kong.
The rapid growth in assets under management for CSOP Ether Futures ETF further demonstrates the increasing demand for cryptocurrency investment options. Additionally, the average daily turnover for the CSOP Bitcoin Futures ETF has surged this year, reaching levels comparable to major Hong Kong property giants.
Market participants expect Hong Kong to approve its first spot bitcoin ETF this year, as officials aim to establish the city as a hub for virtual assets. The numerous applications for spot bitcoin ETFs submitted to the Hong Kong Securities and Futures Commission indicate strong interest in this investment avenue.
Overall, Hong Kongโs bitcoin ETF is experiencing significant success amidst growing demand and favorable market conditions.
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