Hong Kong’s CSOP Bitcoin Futures ETF Sees 5-Fold Surge in Assets Amid BTC Rally

CSOP Asset Management, a capital market firm in Hong Kong, disclosed in an interview with Reuters that its exchange-traded product, the CSOP Bitcoin Futures ETF (3066.HK), has witnessed a surge in assets under management (AUM) over the past five months.

The ETF’s Assets Under Management (AUM) has soared five-fold to over $100 million.

Rising Trading Volumes and AUM

Regarding trading volumes, the CSOP Bitcoin Futures ETF has increased in average daily turnover, reaching $2.8 million this year compared to $0.97 million last year.

The growth in AUM is not limited to Bitcoin alone; the CSOP Ether Futures ETF (3068.HK) has also experienced a surge in AUM, doubling over this year.

As noted by Alessandro Zhu, Deputy Head of Fixed Income at CSOP Asset Management, the surge in demand has primarily been driven by various factors. These include the recent approval and launch of spot Bitcoin ETFs in the U.S., which have sparked investor enthusiasm due to the perceived potential for further price appreciation resulting from BTC’s limited supply.

Bitcoin’s strong performance relative to Hong Kong stocks on the Hang Seng Index (.HSI) has also amplified investor interest in the asset.

Zhu also noted that despite cryptocurrency trading being prohibited in mainland China, offshore Chinese financial institutions have been actively investing in Bitcoin ETFs in Hong Kong, taking advantage of the city’s regulatory framework. This influx of institutional capital and the growing retail interest have propelled the CSOP Bitcoin Futures ETF to new heights.

Market Players Eye Crypto-Friendly Future

Market participants anticipate further developments in the Hong Kong ETF landscape, with expectations increasing for approving the first spot Bitcoin ETF.

Kennix Chan, executive director of Victory Securities, highlighted the promising signs, citing a significant number of spot Bitcoin ETF applications submitted to the Hong Kong Securities and Futures Commission in recent months.

Amidst these developments, Hong Kong continues to solidify its position as a hotspot for crypto-related activities. Harvest Fund Hong Kong recently filed for a spot Bitcoin ETF with the Hong Kong Securities Regulatory Commission.

Meanwhile, discussions are underway between Harvest Global Investments, a subsidiary of Harvest Fund, and the Hong Kong Monetary Authority regarding planned stablecoin trials within regulatory frameworks.

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