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Crypto futures ETFs in Hong Kong get off to tepid start

The launch is part of broader plans to transform Hong Kong into a virtual assets trading hub.
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Asia’s first cryptocurrency exchanged traded funds (ETFs), which debuted on the Hong Stock Exchange on Friday, have received a lukewarm reception from investors so far.

The two new ETFs – the CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF – managed by CSOP Asset Management track the standardised, cash-settled bitcoin futures contracts and ether futures contracts traded on the Chicago Mercantile Exchange.

After debuting at their estimated net asset values, both at HK$7.77 ($1) per unit, the CSOP Bitcoin Futures ETF closed up 0.5% at HK$7.81 per unit, while the CSOP Ether Futures ETF ended 0.4% higher at HK$7.805 on Friday. The CSOP Bitcoin Futures ETF closed down 1.62% at HK$7.383 on Monday, while the CSOP Ether Futures ETF was down 2.4% at HK$7.182.

The launch of the ETFs come at an awkward time for Hong Kong given how the collapse of FTX, once the second largest cryptocurrency exchange globally, has exacerbated an already difficult period for the sector.

Nonetheless, the Hong Kong government is pushing ahead with plans announced at the end of October to make the special administrative region a cryptocurrency hub including allowing retail investors to trade virtual assets for the first time.

Part of the Mark Allen Group.