• The CSOP Bitcoin Futures ETF (3066.HK) will be available to investors in the Hong Kong Stock Exchange starting December 16.
• The ETF will track the Chicago Mercantile Exchange’s Bitcoin ETFs, and it has received approximately $53 million in initial investments.
• The approval of the ETFs signals acceptance of cryptocurrency in traditional finance in the Asian markets, but it is not truly bitcoin in the sense that one cannot exchange the ETF shares for real bitcoin.
The CSOP Bitcoin Futures ETF (3066.HK) is set to be available to investors in the Hong Kong Stock Exchange starting December 16. This ETF will track the Chicago Mercantile Exchange’s Bitcoin ETFs, allowing investors to have active investment, and it has received approximately $53 million in initial investments at a listing price of $1 (HKD 7.75).
The approval of the ETFs is a significant milestone for the acceptance of cryptocurrency in traditional finance in the Asian markets. However, it is important to note that the ETFs are 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. This means that while the ETFs provide exposure to virtual assets, they do not provide the same experience as investing in real bitcoin.
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 serves as a testament to the increasing demand for virtual assets and the potential of such investments in the future.
In light of this, the Securities and Futures Commission of Hong Kong announced the launch of ETFs tracking crypto futures for public offering on 31 October 2022. This marks the first time Asian retail investors can get exposure to virtual assets.
Overall, the approval of the CSOP Bitcoin Futures ETF signals the increasing acceptance of cryptocurrency in traditional finance in the Asian markets. While the ETFs provide exposure to virtual assets, they do not provide the same experience as investing in real bitcoin. However, the launch of the ETFs could be a sign of more investment opportunities to come in the future.