Hong Kong Launches First Cryptocurrency ETF

Hong Kong launched its first two exchange-traded funds for cryptocurrency futures on Friday, following a commitment made in October to transform the city into a regional digital asset hub to rival Singapore.

of ETFs After raising around $79 million in initial investment, it traded almost flat upon its debut. CSOP Asset Management’s Bitcoin Futures and Ethereum Futures ETFs raised $58.9 million and $19.7 million respectively before listing, the Hong Kong-based group said in a statement. The ETF gives Chicago investors access to cryptocurrency futures traded on the Chicago Mercantile Exchange.

Deployment is a key component of the plan for Hong Kong to become a nation. cipher Sam Bankman-Fried’s FTX exchange collapses, plunges digital asset prices, and becomes a hub despite signs of distress across the industry.

Several notable Asian cryptocurrency groups are already facing trouble on Hong Kong exchanges following the FTX implosion. AAX Stops Withdrawals and Singapore Lenders Amber is putting its expansion plans on hold.

Hong Kong-based cryptocurrency cash shop genesis blockwas partly owned by FTX offshoot Alameda Ventures, which last month closed its trading portal and stopped accepting deposits.

Both ETFs opened Friday at HKD 7.77 ($1) per unit. The Bitcoin Futures ETF settled at around HK$7.785 at noon, while the Ether ETF was at HK$7.78 per unit.

Carlton Lai, head of blockchain and cryptocurrency research at Daiwa Capital Markets in Hong Kong, said the initial $79 million funding was lower than expected. “It really shows the bear market and the current lack of confidence in the asset class,” he added.

Hong Kong has launched a crypto ETF to help make it easier for retail investors to trade digital assets after years of stricter regulation than rival financial center Singapore. be. .

Julia Leung, who was appointed to head Hong Kong’s Securities and Futures Commission on Thursday, highlighted the Chinese territory’s “pioneering” regulatory approach to crypto trading. A former journalist and now deputy chief executive of a market watchdog, she will become the regulator’s first female head in January.

“When other major regions are singing in the same vein and trying to establish a more holistic regulatory regime, we are already [regulations] Leung said at a conference last month.

An update to the city’s anti-money laundering laws, passed last week and set to come into force next year, will require virtual asset service providers to comply with guidelines before obtaining an operating license.

Wilfred Yu, Co-Chief Operating Officer of the Stock Exchange of Hong Kong, said the introduction of ETFs will strengthen Hong Kong’s role as an international financial center and “strengthen Hong Kong’s continued growth as the preferred ETF market in Asia. ‘, he said.

“We are excited about the opportunities in the crypto asset space,” he added.