The CSOP Bitcoin Futures ETF raised $53.8 million, while the CSOP Ether Futures ETF raised $19.7 million in seed investment.

Exchange-traded funds (ETFs) managed by CSOP Asset Management raised $73.6 million before being listed on the Hong Kong Stock Exchange on Dec.

In its announcement, the ETF issuer highlighted that the CSOP Bitcoin futures ETF has raised $53.8 million, while the CSOP Ether Futures ETF has raised $19.7 million in seed investment. Both ETFs will be managed to invest in Bitcoin
BTC

down cursors
$16,842

and ether
ETH

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$1,213

Futures contracts listed on the Chicago Mercantile Exchange track asset prices.

According to Tim McCourt, an executive at CME Group, the listing of ETFs shows “increasing client demand for exposure to Bitcoin and Ether.” McCourt noted that the introduction of funds could create new opportunities for institutional and individual investors.

Yi Wang, an executive director at CSOP, said in an interview with Reuters that ETF trading has more protection than trading tokens on unregulated platforms. Wang explained:

“Since ETFs do not invest in physical bitcoins and are traded on regulated exchanges in the US and Hong Kong, there is more regulatory protection for investors than tokens traded on unregulated platforms.
The CEO also noted that the developments regarding the two cryptocurrency futures ETFs highlighted that despite the “liquidity issues” affecting some crypto platforms, Hong Kong remains open when it comes to the development of virtual assets.

Related: Institutional Investors Still Looking To Cryptocurrencies Despite FTX Crash

On October 31, Hong Kong regulator Securities and Futures Commission (SFC) announced that it will allow listing of ETFs linked to Bitcoin and Ether futures. In a prospectus, the SFC laid out guidelines for ETF issuers, including having a proven track record and three years of experience managing ETFs.

Unlike China, Hong Kong seems to aim to legalize cryptocurrency trading. On October 21, the special administrative district is considering creating its own cryptocurrency bill, differentiating itself from the approach of mainland China, where a comprehensive ban on cryptocurrencies is in effect.

Source: CoinTelegraph

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