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.
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.
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.
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