Hong Kong Launches Asia’s First Crypto Futures ETFs

Hong Kong Exchanges and Clearing (HKEX) expanded its ecosystem by adding two crypto exchange-traded funds (ETFs) – the first of its kind in Asia.

Today, the HKEX listed two news ETFs: CSOP Bitcoin Futures and CSOP Ether Futures which are products that track cash-settled Bitcoin and Ether futures contracts traded on the Chicago Mercantile Exchange (CME). According to reports by Reuters, the ETFs, both managed by CSOP Asset Management, invest in Bitcoin and Ether futures listed on the CME exchange in the United States, – the only cryptocurrency assets currently permitted by Hong Kong’s Securities and Futures Commission (SFC).

Wilfred Yiu, HKEX’s COO and co-head of markets said:

These ETFs “provide investors with exposure to the digital asset space for the first time in Asia and reflect both our ongoing commitment to, and the market’s appetite for, the digital economy.

HKEX indicated that ETFs are one of the fastest-growing segments in its products suite and the exchange has also announced plans to expand the diversity of its offerings. In 2022, the exchange supported the listings of the first metaverse ETF, carbon futures ETF, and blockchain ETF on the market according to reports by Tech In Asia.

Not long before the collapse of FTX, the SFC said that it would start consultations to allow retail investors to trade cryptos and ETFs, and had initially proposed restricting participation to professional investors.

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.

Wang further said:

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.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.