Crypto investment is on the rise, and investors have shown great interest in exchange-traded funds (ETFs) related to Bitcoin and Ether futures. This has been highlighted by the success of the CSOP Bitcoin Futures ETF and the CSOP Ether Futures ETF, which have raised a total of $73.6 million ahead of their debut on the Hong Kong Stock Exchange later this month.
The CSOP Bitcoin Futures ETF has raked in $53.8 million, while the CSOP Ether Futures ETF has collected $19.7 million in initial investments. Both ETFs will be managed to invest in Bitcoin and Ether futures listed on the Chicago Mercantile Exchange.
Tim McCourt, an executive at CME Group, stated that the listing of the ETFs demonstrates increasing demand from clients for exposure to Bitcoin and Ether. He also suggested that it could create new opportunities for institutional and retail investors.
Yi Wang, an executive at CSOP, emphasized the improved safety for investors trading the ETFs as opposed to tokens traded on unregulated platforms. He maintained that “there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms”.
The developments relating to the two crypto futures ETFs demonstrate that Hong Kong is open-minded when it comes to the development of virtual assets, despite the potential liquidity issues facing some platforms. On October 31, the Hong Kong regulator Securities and Futures Commission (SFC) laid out guidelines for ETF issuers, allowing them to list funds connected to Bitcoin and Ether futures.
Unlike China, Hong Kong is moving towards legalizing crypto trading, with plans for its own crypto bill in the works. This sets it apart from mainland China’s blanket crypto ban, and further demonstrates the increasing appeal of crypto investment.
