Hong Kong's largest bitcoin ETF belongings up five-fold since October

By Summer season Zhen

HONG KONG (Reuters) – Hong Kong’s largest bitcoin futures exchange-traded fund noticed its belongings underneath administration swell five-fold previously 5 months to simply over $100 million, as native traders chased the rally on this planet’s best-known cryptocurrency.

Hong Kong has been a relative latecomer to crypto buying and selling, approving its first three cryptocurrency futures ETFs in late 2022.

CSOP Asset Administration, which manages the CSOP ETF, stated demand grew considerably in February.

The approval and launch of spot bitcoin ETFs within the U.S. this yr has spurred demand from traders who consider the token’s restricted provide will push costs larger, stated Alessandro Zhu, who oversees crypto merchandise and is deputy head of fastened earnings at CSOP Asset Administration.

‘s vital outperformance of Hong Kong shares has additionally boosted demand, he added.

Zhu famous that though cryptocurrency buying and selling is banned in mainland China, offshore Chinese language monetary establishments might put money into bitcoin ETFs in Hong Kong.

Bitcoin has gained 45% this month alone and, buying and selling round $63,000 on Thursday, is closing in on its November 2021 file highs close to $69,000.

Property underneath administration for CSOP Ether Futures ETF have additionally benefited, doubling this yr.

Volumes have surged.

Common day by day turnover for the CSOP Bitcoin Futures ETF this yr has jumped to $2.8 million in comparison with $0.97 million final yr, now at par with turnover in some Hong Kong property giants such because the Wharf (Holdings).

Some market individuals count on Hong Kong to approve the primary spot bitcoin ETF this yr as officers are eager to develop town as a hub for digital belongings.

“Hong Kong’s bitcoin ETF is exhibiting promising indicators with numerous (spot bitcoin ETF) functions to Hong Kong Securities and Futures Fee previously few months,” stated Kennix Chan, government director of Victory Securities.