The Rise of Bitcoin ETFs in Hong Kong
Surge in Demand for Bitcoin ETFs in Hong Kong
Hong Kong’s largest bitcoin futures exchange-traded fund has experienced a remarkable five-fold increase in assets under management in just five months, reaching over $100 million. Local investors have been eager to capitalize on the soaring value of the popular cryptocurrency.
Late Entry into Crypto Trading in Hong Kong
Hong Kong entered the cryptocurrency trading scene relatively late, approving its first three cryptocurrency futures ETFs in late 2022. Despite this delay, the demand for digital assets has been steadily growing.
Spiking Demand in February
CSOP Asset Management, the manager of the CSOP ETF, reported a substantial surge in demand for bitcoin futures ETFs in February. This spike can be attributed to the approval and launch of spot bitcoin ETFs in the U.S., driving investor interest in the limited supply of cryptocurrencies.
Impact of Bitcoin’s Performance on Hong Kong Stocks
Bitcoin’s impressive performance has outstripped that of Hong Kong stocks, further fueling the demand for bitcoin ETFs. Alessandro Zhu, overseeing crypto products at CSOP Asset Management, highlighted the significant growth in demand from investors.
Accessibility for Offshore Chinese Financial Institutions
While cryptocurrency trading is prohibited in mainland China, offshore Chinese financial institutions have found a way to invest in bitcoin ETFs in Hong Kong. This accessibility has contributed to the substantial uptick in asset under management for bitcoin and ether futures ETFs.
Promising Future for Spot Bitcoin ETFs in Hong Kong
Anticipation is high for Hong Kong to approve its first spot bitcoin ETF, positioning the city as a hub for virtual assets. Market observers predict a positive outlook for the development of spot bitcoin ETFs in the region.
Increasing Volumes and Turnover
The volumes for bitcoin futures ETFs have surged, with average daily turnover for the CSOP Bitcoin Futures ETF reaching $2.8 million this year. This growth places the turnover on par with some of Hong Kong’s leading property giants, indicating a robust market for digital assets.
