The CSOP Bitcoin Futures ETF has raked in $53.8 million, while the CSOP Ether Futures ETF has collected $19.7 million in initial investments.
Before their Dec. 16 registration on the Hong Kong Stock Exchange, cryptocurrency futures exchange-traded funds (ETFs) managed by CSOP Asset Management have raised $73.6 million in investments.
In an announcement, the ETF issuer highlighted that its CSOP Bitcoin Futures ETF has raked in $53.8 million, while the CSOP Ether Futures ETF has collected $19.7 million in initial investments.
Both ETFs will be managed to invest in Bitcoin (BTC $17,346) and Ether (ETH $1,26) futures listed on the Chicago Mercantile Exchange to track the asset prices.
A CME Group employee named Tim McCourt claims that the registration of the ETFs demonstrates “increasing client demand for exposure to Bitcoin and Ether” According to McCourt, the launch of the funds might present both institutional and ordinary investors with fresh options.
A CSOP executive named Yi Wang told Reuters in an interview that trading the ETF offers greater protections than trading tokens on unregulated marketplaces. Wang clarified:
“As the ETFs do not invest in physical Bitcoin and are traded on regulated U.S. and Hong Kong exchanges, there are more regulatory safeguards for investors compared to tokens traded on unregulated platforms.”
The CEO also stated that despite the “liquidity concerns” plaguing some crypto platforms, the developments connected to the two crypto futures ETFs show that Hong Kong is still open-minded when it comes to the development of virtual assets.
The Securities and Futures Commission (SFC), a Hong Kong regulatory body, declared on October 31 that it will permit the listing of ETFs linked to Bitcoin and Ether futures.
The SFC outlined requirements for ETF issuers in a circular, which included having a solid track record and three years of experience administering ETFs. Hong Kong appears to be striving for the legality of cryptocurrency trade, unlike China. The special administrative area is deviating from mainland China’s policy, which imposes a general crypto ban, by debating the creation of its own cryptocurrency bill on October 21.
