Crypto futures ETFs debut in Hong Kong to lukewarm interest after market turmoil from FTX collapse
- CSOP introduced bitcoin and ether exchange traded funds in Hong Kong, the first in the city after the government committed to becoming a virtual asset hub
- The funds rose less than 0.5 per cent on Friday as plummeting crypto values this year, worsened by FTX’s collapse, loom over the market
Two exchange traded funds (ETFs) for bitcoin and ether futures debuted in Hong Kong on Friday to tepid interest from investors amid an ongoing cryptocurrency market rout as the city forges ahead with its plans to become a virtual asset hub.
CSOP Asset Management’s Bitcoin Futures ETF (3066) and Ether Futures ETF (3068) both rose 0.45 per cent for the day to HK$7.8 (US$1). The funds saw an uptick in trading activity towards the end of the day after a slow morning. The bitcoin fund rose 0.2 per cent in its first hour and the ether fund fell 0.2 per cent.
The bitcoin ETF ended the day with a trading volume of 823,400 shares and the ether ETF reached 440,500.
The funds outperformed their respective assets for the previous 24 hours, with bitcoin down 1 per cent and ether down 0.8 per cent, according to CoinGecko.
The ETFs are the first of their kind in Hong Kong, launching one month after the city government announced plans to boost development of virtual assets, including allowing for greater retail participation through a new licensing regime and allowing public offerings of virtual asset futures ETFs with exposure to cryptocurrencies.
CSOP’s two cryptocurrency funds track bitcoin and ether futures listed on the Chicago Mercantile Exchange (CME) in the US.