HONG KONG, Dec 15 (Reuters) – Two trade traded funds (ETF) that monitor U.S.-listed cryptocurrency futures have raised a mixed $73.6 million forward of their debut on the Hong Kong inventory trade on Friday in defiance of the sector’s meltdown.
Cryptocurrencies have endured months of turmoil, with the collapse of crypto trade FTX the newest blow to the sector. Bitcoin, the most important cryptocurrency, has misplaced greater than 70% of its worth since hitting a document excessive in November 2021.
The ETFs, managed by CSOP Asset Administration, put money into bitcoin and ether futures listed on the CME trade in the US, the one cryptocurrency property presently permitted by Hong Kong’s Securities and Futures Fee (SFC).
The bigger of the 2, CSOP Bitcoin Futures ETF (3066.HK), pulled in $53.9 million, in response to the supervisor. That topped ProShares Bitcoin Technique ETF , the primary U.S. bitcoin futures ETF that debuted on the NYSE Arca trade in October 2021 with $20 million of seed capital, in response to media studies.
“Coming after the latest liquidity issues affecting among the crypto platforms, our two crypto futures ETFs show that Hong Kong stays open-minded on the event of digital property,” stated Yi Wang, head of quantitative funding at CSOP.
Simply earlier than FTX’s collapse final month, the SFC stated in October it will begin a session to permit retail traders to commerce cryptocurrencies and ETFs. The regulator had initially proposed proscribing participation to skilled traders.
“Because the ETFs don’t put money into bodily bitcoin, and are traded on regulated U.S. and Hong Kong exchanges, there are extra regulatory safeguards for traders in comparison with tokens traded on unregulated platforms,” Wang stated.
On Friday, every lot buying and selling on the Hong Kong Exchanges & Clearing (HKEX) (0388.HK) will debut at HK$780 every.
“The value of bitcoin could also be topic to manipulation as a good portion is held by a small variety of holders” and the CME futures may drop to zero, the ETFs’ product doc filed to the HKEX stated.
Reporting by Georgina Lee Modifying by Mark Potter
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