December 19, 2022
By Sharan Kaur Phillora
Three Hong Kong-based asset management firms had previously applied for exchange-traded funds (ETFs) tracking Bitcoin and Ethereum futures, traded on the Chicago Mercantile Exchange, for retail investors.
And now CSOP Asset Management has received approval to list its Bitcoin and Ethereum exchange-traded funds (ETFs) on the Hong Kong Stock Exchange by Dec. 16.
Here’s what we know:
The race to launch retail crypto future ETFs, which allow investors to buy or sell bitcoin through the fund, comes as the city aims to become a regional virtual asset hub. The SFC announced on Oct. 31 that it could allow retail investors to trade in ETFs linked to digital assets, triggering a flurry of inquiries from financial companies.
The Securities and Futures Commission (SFC) approved CSOP’s ETF application, and the CSOP Bitcoin Futures ETF and CSOP Ethereum Futures ETF will soon be listed for trading on the Hong Kong Stock Exchange on Dec.16.
Huasheng Securities has exclusively subscribed for the first set of CSOP’s Bitcoin and Ethereum ETFs and spoke to qq news, saying, “The cooperation with CSOP to launch the first virtual asset futures ETF in Hong Kong will provide investors with new options for financial management and investment.”
Compared with some jurisdictions, Hong Kong has taken a relatively conservative approach to deal with crypto. In 2018 it restricted access to virtual-asset-based funds to professional investors with portfolios of up to 8 million Hong Kong dollars ($1 million), with the SFC citing heightened risks and a lack of regulation in the sector. Now the city is trying to show it is more crypto-friendly, hinting at loosening rules to allow individuals to participate.
Institutional and private bank clients in Hong Kong, mainland China, and Taiwan have shown more interest in investing in cryptocurrency ETFs, but the recent trouble at FTX and cryptocurrency market volatility could impact investors’ views.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.