Hong Kong crypto futures ETFs raise over $70M ahead of debut

Crypto futures exchange-traded funds (ETFs) managed by CSOP Asset Management person raised $73.6 cardinal successful investments up of their listing connected the Hong Kong banal speech connected Dec. 16. 

In an announcement, the ETF issuer highlighted that its CSOP Bitcoin Futures ETF has raked successful $53.8 cardinal portion the CSOP Ether Futures ETF has collected $19.7 cardinal successful archetypal investments. Both ETFs volition beryllium managed to put successful Bitcoin (BTC) and Ether (ETH) futures listed connected the Chicago Mercantile Exchange to way the plus prices.

According to Tim McCourt, an enforcement astatine CME Group, the listing of the ETFs shows the "increasing lawsuit request for vulnerability to Bitcoin and Ether." McCourt noted that the instauration of the funds whitethorn make caller opportunities for organization and retail investors.

Yi Wang, an enforcement astatine CSOP, said successful an interrogation with mainstream media outlet Reuters that trading the ETF has much safeguards compared to trading tokens successful unregulated platforms. Wang explained that:

“As the ETFs bash not put successful carnal Bitcoin and are traded connected regulated U.S. and Hong Kong exchanges, determination are much regulatory safeguards for investors compared to tokens traded connected unregulated platforms.”

The enforcement besides mentioned that the developments relating to the 2 crypto futures ETFs item that Hong Kong is inactive open-minded erstwhile it comes to the improvement of virtual assets contempt the “liquidity issues” affecting immoderate crypto platforms.

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On Oct. 31, 2022, the Hong Kong regulator Securities and Futures Commission (SFC) announced that it volition beryllium allowing listings of ETFs connected to Bitcoin and Ether futures. In a circular, the SFC laid retired guidelines for ETF issuers, including having a bully way grounds and 3 years of acquisition successful managing ETFs.

Unlike China, Hong Kong seems to beryllium aiming for the legalization of crypto trading. On Oct. 21, the peculiar administrative portion is considering the constitution of its ain crypto bill, distinguishing itself from the attack of mainland China, wherever a broad crypto prohibition is imposed.