Hong Kong’s largest Bitcoin Futures Exchange-Traded Fund has increased its assets five times assets under management in the last five months to $100 million, as local investors have followed the rally in the world’s most famous cryptocurrencies.
Hong Kong has been a relatively late country in crypto trading, which has approved its first three cryptocurrency futures ETF at the end of 2022. CSOP Asset Management, which manages CSOP Bitcoin Futures ETF, said demand has significantly increased in February. Alessandro Zhu, who supervised crypto products and deputy head of fixed income in CSOP Asset Management, said, the approval and launch of Spot Bitcoin ETF in the US this year has increased the demand of investors, who believe that the limited supply prices of tokens will increase more.
He said that Bitcoin’s notable better performance compared to Hong Kong’s shares has also promoted demand. Zhu said that although there is a ban on cryptocurrency trading in mainland China, the offshore Chinese financial institutions can invest in Bitcoin ETF in Hong Kong. Bitcoin alone has risen by 45% this month and trading around $63,000 on Thursday, it is closing its record high to around $69,000 in November 2021.
The assets under the management of CSOP Ether Futures ETF have also benefited, which has doubled this year. Volume has increased. This year the average daily turnover of CSOP Bitcoin Futures ETF has increased to $2.8 million over last year’s $0.97 million, which is now equivalent to some Hong Kong property giants trading like Wharf (Holdings).
Some market participants expect Hong Kong to approve the spot Bitcoin ETF earlier this year as officers are interested to develop the city as a centre of virtual property. Kenix Chan, Executive Director of Victory Securities said, Hong Kong’s Bitcoin ETF is showing promising signs with a large number of (Spot Bitcoin ETF) applications in the Hong Kong Securities and Futures Commission in the last few months. “
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