The Hong Kong Stock Exchange has today started trading two ETFs linked to US-listed futures on cryptocurrencies.
The structures, CSOP Bitcoin Futures ETF and CSOP Ethereum Futures ETF, are reportedly managed by CSOP Asset Management and invest in CME bitcoin and Ethereum futures.
Before being launched, the first fund raised $53.9 million, whereas the second ETF raised $19.7 million.
CSOP head of quantitative investments, Yi Wang, has explained:
“Because exchange-traded funds do not invest directly in cryptocurrency and are traded on regulated exchanges in the US and Hong Kong, greater regulatory safeguards are formed for investors compared to investing in tokens on platforms outside the supervision of authorities.”
The Hong Kong Financial Services and Treasury Bureau promised in October to provide regulatory mechanisms and protections for buyers of digital asset-based ETFs.