Hong Kong’s largest bitcoin ETF assets up five-fold since October

By Summer season Zhen

HONG KONG (Reuters) – Hong Kong’s largest bitcoin futures exchange-traded fund noticed its belongings below administration swell five-fold prior to now 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 Bitcoin Futures 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 mounted revenue at CSOP Asset Administration.

Bitcoin’s important 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 may 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 report highs close to $69,000.

Belongings below administration for CSOP Ether Futures ETF have additionally benefited, doubling this yr.

Volumes have surged.

Common every 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 contributors anticipate 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) purposes to Hong Kong Securities and Futures Fee prior to now few months,” stated Kennix Chan, govt director of Victory Securities.

(Reporting by Summer season Zhen; Modifying by Vidya Ranganathan and Edwina Gibbs)