Crypto Futures ETFs in Hong Kong Raise Nearly $74 Million Before Launching
The CSOP Bitcoin Futures ETF was able to raise $53.8 million while CSOP Ether Futures ETF has secured $19.7 million.
by Juan Aranovich, research analyst at Sino Global Capital
Ahead of the listing on Hong Kong's stock exchange, CSOP Asset Management's crypto future exchange-traded funds (ETFs) raised $73.6 million in investments.
The CSOP Bitcoin Futures ETF was able to secure $53.8 million in initial investments while the CSOP Ether Futures ETF garnered $19.7 million. These ETFs invest in futures for both crypto tokens and track their price changes.
ETFs offer a range of benefits to the industry. They provide investors with a way to trade and invest in assets without having to own or directly purchase them. Additionally, ETFs can be traded during regular trading hours, offer more diversification than owning single stocks and bonds, and come with lower operating costs considering they can be managed by a professional fund manager.
The regulatory safeguards offered by these regulated products may provide a much-needed layer of trust and security for investors.
“The development of the two crypto futures ETFs reflects Hong Kong's progressive attitude toward the growth of the digital assets industry,” said Matthew Graham, CEO at Sino Global Capital. Unlike China, the city is moving towards legalizing cryptocurrency trading with the possible introduction of its own crypto legislation.
Yi Wang, head of quantitative investment at CSOP, emphasized this commitment, claiming that this move proves the city’s “open-mindedness” on the development of digital asset-related projects.
Tim McCourt, Global Head of Equity and FX Products at CME Group, highlighted the growing demand for exposure to Bitcoin and Ether, saying that these new listings open up opportunities for institutional and retail investors.