Hong Kong’s CSOP Bitcoin Futures ETF Sees Trading Volume Soar Amid Bitcoin Price Rally

October 26, 2023

By Sharan Kaur Philloria

In a recent surge, the trading volume of the Hong Kong CSOP Bitcoin Futures ETF spiked to HK$175.87 million on October 24, marking a significant upturn in capital inflows at HK$138 million. 

Here’s what we know:

This record-breaking activity was spotlighted by notable Chinese cryptocurrency journalist Colin Wu, who emphasized the day as the most significant in trading volume and net inflow since the ETF’s debut. Prior to this, the daily turnover ranged modestly between HK$1 million to HK$2 million.

The CSOP Bitcoin Futures ETF, a Hong Kong-incorporated actively managed exchange-traded fund, is designed for long-term investors eyeing capital growth primarily through investments in CME Bitcoin Futures. This substantial rise in trading volume reflects the investors’ growing confidence and the broader market sentiment fueled by the recent rally in Bitcoin’s price.

The surge in trading activity coincides with notable market movements. According to real-time financial reporting platform Watcher Guru, Bitcoin’s price spike led to a liquidation of $310 million worth of Bitcoin shorts in the last 24 hours. Concurrently, Lookonchain, an onchain platform, highlighted that MicroStrategy’s holdings of 158,245 BTC, valued at $5.4 billion, have yielded an unrealized profit of approximately $746 million. Since May 2022, the firm has acquired an additional 28,560 Bitcoins, averaging a purchase price of $25,707, effectively reducing its average buying price to $29,582.

These unfolding market dynamics follow a newly discovered volatility in the Bitcoin arena, with the cryptocurrency rallying 17.5% within a 24-hour window, moving from $30,007 to a high of $35,189, a peak not seen since May 2022. 

At the time of reporting, Bitcoin is trading at $34,616, and the bullish price action is anticipated to continue as we approach year-end, showcasing a robust momentum that aligns with the heightened trading activity in the CSOP Bitcoin Futures ETF.

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.

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