Hong Kong’s first cryptocurrency-based Exchange Traded Fund ( ETF) has raised over $73 million before debuting on regional stock exchanges. The launch of two ETFs tracking US-listed cryptocurrency futures comes despite current problems in the industry.
Bitcoin and Ether Futures ETF Debuts in Crypto Winter in Hong Kong
Two ETFs Tracking Crypto Futures A total of $73.6 million was raised The big exchange raised $53.9 million in Hong Kong on Friday, according to Reuters. The press noted that the launch ignored ongoing turmoil in the sector. and Ether (ETH) to invest in futures. Crypto assets currently allowed by Hong Kong’s Securities and Futures Commission (SFC). Yi Wang, Head of Quantitative Investments at CSOP, commented on the development: He is interested in developing virtual assets.
This year’s crypto market slump has led to significant price drops for major cryptocurrencies, with the largest coin, BTC, hitting a record high just over a year ago. updated.
Falling interest rates were accompanied by a series of industry failures. The latest was the collapse of FTX, a major cryptocurrency exchange with global reach, which declared bankruptcy in mid-November amid liquidity issues.
Weeks before the crash, the SFC announced in October that it would begin talks on whether to allow retail investors to trade cryptocurrencies and his ETFs. Watchdog’s first suggestion was to limit participation to professional investors only.
Later, in November, Commission Deputy CEO Julia Leung announced that the SFC would “positively” establish a regulatory framework that would allow the trading of funds traded on cryptocurrency futures exchanges. We are seriously considering it,” he said.
“Because ETFs do not invest in physical bitcoin and are traded on regulated US and Hong Kong exchanges, they are less expensive compared to tokens traded on unregulated platforms. , there are more regulatory protections for investors,” Yi Wang elaborates now.
Image Credits: Shutterstock, Pixabay, Wiki Commons
