June 19, 2024


Super Technology

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Hong Kong Stock Exchange debuts ‘Asia’s first’ crypto futures ETFs

The Hong Kong Exchanges and Clearing Ltd. launched two exchange-traded funds (ETFs) tracking cryptocurrency futures on Friday, becoming the first “in Asia to offer crypto asset exposure through ETFs,” the exchange said.

See related article: Hong Kong’s virtual asset licensing regime to take effect next June

Fast facts

  • The two ETFs — CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF — respectively track the Bitcoin futures contracts and Ether futures contracts traded on the Chicago Mercantile Exchange, and are both managed by CSOP Asset Management Ltd., a Hong Kong unit of Chinese state-backed asset manager China Southern Asset Management Co. Ltd. 
  • The two attracted a combined US$73.6 million in investment ahead of their Friday debut, CSOP said in a Thursday statement.
  • “They provide investors with exposure to the digital asset space for the first time in Asia and reflect both our ongoing commitment to, and the market’s appetite for, the digital economy,” Wilfred Yiu, chief operating officer and co-head of markets of Hong Kong Exchanges and Clearing, or HKEX, said in a Friday statetment.
  • The city’s first crypto-linked ETFs come after Hong Kong in October said it would work to regain its role as a cryptocurrency hub in Asia. Financial Secretary Paul Chan last month doubled down on the government’s position despite the collapse of the FTX.com exchange.
  • Last week, Hong Kong’s Legislative Council passed an amendment to the bill that includes a licensing regime for virtual asset service providers, which will come into effect on June 1, 2023. 

See related article: Hong Kong mulls regulatory requirements for local licensed crypto exchanges: report