Hong Kong’s first crypto-based exchange-traded funds (ETFs) have attracted more than $73 million ahead of their debut on the region’s stock exchange. The launch of the two ETFs tracking U.S.-listed cryptocurrency futures comes despite the industry’s current problems.
Hong Kong Debuts Bitcoin and Ether Futures ETF in Midst of Crypto Winter
Two ETFs tracking crypto futures raised a total of $73.6 million ahead of their stock exchange debut in Hong Kong on Friday, with the largest raising $53.9 million, according to Reuters. The news agency noted that the launch is a challenge to the ongoing turmoil 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 crypto assets allowed by the Hong Kong Securities and Futures Commission (SFC) at this time. Commenting on the development, Yi Wang, head of quantitative investment at CSOP, stated:
“After the recent liquidity issues affecting some of the crypto platforms, our two crypto futures ETFs demonstrate that Hong Kong remains open-minded in the development of virtual assets.”
This year’s crypto market recession led to a significant drop in the prices of major cryptocurrencies with the largest coin by the cap, BTC, losing more than 70% of its value from its all-time high recorded just over a year ago.
The drop in rates was accompanied by a series of industry failures, the latest of which was the collapse of FTX, a leading cryptocurrency exchange with global reach, which filed for bankruptcy in mid-November amid liquidity problems.
Weeks before its collapse, 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 initial proposal was to limit participation to professional investors only.
Then, in November, the Commission’s deputy executive director, Julia Leung, was quoted as saying that the SFC is “actively seeking” to establish a regulatory framework that allows the trading of exchange-traded funds for crypto futures.
“As ETFs do not invest in physical bitcoins and are traded on regulated exchanges in the United States and Hong Kong, there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms,” Yi Wang explained now.
Source: Bitcoin.com
Stay Tuned with Us:
 have... %%title%%){kind=link}