First Bitcoin ETF in Hong Kong

Key points: 

• A recent report revealed that two ETFs tracking U.S.-listed cryptocurrency futures have successfully pivoted to Hong Kong. 
• The ETFs are expected to list on the Hong Kong stock exchange on Friday after raising $73.6 million.
• It will be the first cryptocurrency ETF in the region to receive approval from the Securities and Futures Commission (SFC).
• “As the ETFs do not invest in physical bitcoin, and are traded on regulated U.S. and Hong Kong exchanges, there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms.” - Yi Wang, Head of Quantitative Investment at CSOP, which took management on ETFs.

Throughout the bear market, the crypto-verse has been pointing out that adoption has not taken a backseat. Developments related to crypto projects are in full swing. Global adoption of cryptocurrencies is not far behind. Hong Kong has opened the doors for its first BTC exchange-traded fund [ETF] as Bitcoin [BTC] recovers slightly.

A recent report revealed that two ETFs tracking U.S.-listed cryptocurrency futures have successfully pivoted to Hong Kong. The ETFs are reportedly managed by CSOP Asset Management. The platform has applied for approval to list an ETF that trades Bitcoin and Ethereum [ETH] futures on the Chicago Mercantile Exchange [CME].

The ETFs are expected to list on the Hong Kong stock exchange on Friday after raising $73.6 million. It will be the first cryptocurrency ETF in the region to receive approval from the Securities and Futures Commission (SFC). Each ETF trades on the Hong Kong Exchanges and Clearing [HKEX] at HK$780 each.

Yi Wang, Head of Quantitative Investment at CSOP,  said:

“Coming after the recent liquidity problems affecting some of the crypto platforms, our two crypto futures ETFs demonstrate that Hong Kong remains open-minded on the development of virtual assets.”

Hong Kong and Cryptocurrency ETFs

Hong Kong has made headlines for its recent efforts to regulate the cryptocurrency market. It should be noted that back in October, the government opened the door for consultations on retail investors putting money into cryptocurrencies and ETFs. While the government wanted to limit this to high-level traders, things have definitely changed.

Elaborating on Hong Kong's latest move, Wang explained:

“As the ETFs do not invest in physical bitcoin, and are traded on regulated U.S. and Hong Kong exchanges, there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms.”

Additionally, Bitcoin was trading at $17,702 at press time, down 0.98% on a daily basis.