Hong Kong’s CSOP Bitcoin Futures ETF Sees 5-Fold Surge in Assets Amid BTC Rally

CSOP Asset Administration, a capital market agency in Hong Kong, disclosed in an interview with Reuters that its exchange-traded product, the CSOP Bitcoin Futures ETF (3066.HK), has witnessed a surge in property underneath administration (AUM) over the previous 5 months.

The ETF’s Belongings Underneath Administration (AUM) has soared five-fold to over $100 million.

Rising Buying and selling Volumes and AUM

Relating to buying and selling volumes, the CSOP Bitcoin Futures ETF has elevated in common every day turnover, reaching $2.8 million this 12 months in comparison with $0.97 million final 12 months.

The expansion in AUM will not be restricted to Bitcoin alone; the CSOP Ether Futures ETF (3068.HK) has additionally skilled a surge in AUM, doubling over this 12 months.

As famous by Alessandro Zhu, Deputy Head of Fastened Revenue at CSOP Asset Administration, the surge in demand has primarily been pushed by varied elements. These embody the current approval and launch of spot Bitcoin ETFs within the U.S., which have sparked investor enthusiasm as a result of perceived potential for additional value appreciation ensuing from BTC’s restricted provide.

Bitcoin’s robust performance relative to Hong Kong shares on the Dangle Seng Index (.HSI) has additionally amplified investor curiosity within the asset.

Zhu additionally famous that regardless of cryptocurrency buying and selling being prohibited in mainland China, offshore Chinese language monetary establishments have been actively investing in Bitcoin ETFs in Hong Kong, benefiting from the town’s regulatory framework. This inflow of institutional capital and the rising retail curiosity have propelled the CSOP Bitcoin Futures ETF to new heights.

Market Gamers Eye Crypto-Pleasant Future

Market contributors anticipate additional developments within the Hong Kong ETF panorama, with expectations rising for approving the primary spot Bitcoin ETF.

Kennix Chan, government director of Victory Securities, highlighted the promising indicators, citing a big variety of spot Bitcoin ETF purposes submitted to the Hong Kong Securities and Futures Fee in current months.

Amidst these developments, Hong Kong continues to solidify its place as a hotspot for crypto-related actions. Harvest Fund Hong Kong lately filed for a spot Bitcoin ETF with the Hong Kong Securities Regulatory Fee.

In the meantime, discussions are underway between Harvest World Investments, a subsidiary of Harvest Fund, and the Hong Kong Financial Authority relating to deliberate stablecoin trials inside regulatory frameworks.