• The CSOP Bitcoin Futures ETF (3066.HK) will begin trading on the Hong Kong Stock Exchange starting December 16.
• The ETF will track the Chicago Mercantile Exchange’s Bitcoin ETFs through active investment and has received approximately $53 million in initial investments.
• This marks the first time Asian retail investors will have access to virtual assets through an ETF.
Retail investors in the Asian markets will now be able to access virtual assets through an ETF with the approval of the CSOP Bitcoin Futures ETF (3066.HK). This ETF will begin trading on the Hong Kong Stock Exchange starting December 16, and will track the Chicago Mercantile Exchange’s Bitcoin ETFs through active investment.
The ETF has received approximately $53 million in initial investments at a listing price of $1 (HKD 7.75). The approval of the ETF has both positive and negative connotations. On the one hand, it signals acceptance amongst traditional finance in the Asian markets. On the other hand, it is not truly bitcoin in the sense that one cannot exchange the ETF shares for real bitcoin, nor is the ETF itself backed by a reserve of actual bitcoin. There are claims that such “paper bitcoin” can suppress the price of real bitcoin through diversion of demand.
The first bitcoin futures ETF approved in America, the NYSE-listed ProShares Bitcoin Strategy ETF, launched in October of 2021 with $1 billion in trading volume on its first day. This opening of ETFs tracking crypto futures to the public was announced by Hong Kong’s Securities and Futures Commission on October 31, 2022.
It is expected that the new ETFs will provide a much needed boost to the Asian markets, specifically those in Hong Kong. With the influx of investments and the signal of acceptance amongst traditional finance, the new ETFs may bring a higher level of liquidity to the virtual asset markets. Additionally, it will provide Asian retail investors with a much needed way to get exposure to virtual assets that is both regulated and reliable.