After the Hong Kong regulator cleared the listing of crypto ETFs last October, CSOP Asset Management is the first to get started. The Hong Kong asset manager therefore raised $73.6 million in investments for a listing on the Hong Kong Stock Exchange on December 16.
The Hong Kong Stock Exchange has listed two crypto ETFs
CSOP Asset Management introduced two exchange-traded funds (ETFs) for bitcoin (BTC) and ether (ETH) futures on the Hong Kong Stock Exchange (HKEX) on Friday. This is a first in Asia. This listing comes just over a month after the Hong Kong Securities and Futures Commission (SFC) regulator gave the go-ahead for crypto ETF trading.
CSOP’s two cryptocurrency funds track bitcoin and ether futures contracts listed on the Chicago Mercantile Exchange (CME) in the United States. CSOP explains that these contracts offer retail investors exposure to virtual assets. This, without having to buy the underlying cryptocurrency directly. For Hong Kong Exchange (HKEX), these ETFs reflect its continued commitment to the digital economy.
A promising start
Upon news of the launch of CSOP’s two cryptocurrency funds, investors were mixed. The funds indeed come at a difficult time for the industry following the recent collapse of FTX. Nonetheless, CSOP Asset Management’s bitcoin futures ETF (3066) and ether futures ETF (3068) rose 0.45% on Friday. The first few hours were tough and the ether fund fell 0.2% early on. But the bitcoin futures ETF closes its first day of trading higher.
These numbers seem to be off to a good start given the economic times in the crypto ecosystem. CSOP is now the first ETF manager to offer virtual asset products to retail investors in Hong Kong and Asia. In a maintenance granted to CNBC, Ding Chen, the CEO of CSOP points out “tracking crypto prices in a safe way”. He also mentions the flexibility and transparency of his offers.
The Hong Kong Stock Exchange considers ETFs to be one of the fastest growing segments of its product line. Moreover, HKEX is already planning to further expand its virtual asset offerings.
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