• CSOP Bitcoin Futures ETF (3066.HK) will be available to trade in the Hong Kong Stock Exchange, starting on December 16.
• The ETF tracks the Chicago Mercantile Exchange’s Bitcoin ETFs and has received around $53 million in initial investments with a listing price of $1 (HKD 7.75).
• The approval of the ETFs signals the acceptance of traditional finance in the Asian markets, however, it is not true bitcoin and can divert demand away from real bitcoin.
The Hong Kong Stock Exchange will soon be providing investors with access to the CSOP Bitcoin Futures ETF (3066.HK). Starting on December 16, investors will be able to begin trading the ETF, which tracks the Chicago Mercantile Exchange’s Bitcoin ETFs through active investment. The ETF has already received an impressive $53 million in initial investments at a listing price of $1 (HKD 7.75).
The approval of the ETFs has been met with both positive and negative sentiments from the crypto community. On the one hand, it signals the acceptance of traditional finance in the Asian markets, something that many have been hoping for. On the other hand, it is not true bitcoin in the sense that one cannot exchange the ETF shares for real bitcoin, nor is the ETF itself backed by a reserve of actual bitcoin. Furthermore, some have voiced their concerns that such “paper bitcoin” can suppress the price of real bitcoin through diversion of demand.
The first bitcoin futures ETF approved in America, the NYSE-listed ProShares Bitcoin Strategy ETF, launched in October of 2021, with $1 billion in trading volume on its first day. This was followed by a statement from the Hong Kong Securities and Futures Commission on October 31, 2022, which declared the launch of ETFs tracking crypto futures for public offering, marking the first time Asian retail investors can get this type of exposure to virtual assets.
The approval of the CSOP Bitcoin Futures ETF is an important milestone for the crypto industry as it demonstrates that traditional finance is becoming more and more open to the idea of crypto assets. That being said, it is important to recognize the difference between the ETFs and actual bitcoin, as it is not a true reflection of the bitcoin market and can potentially distort demand. Investors should do their own research and decide whether or not they believe the ETFs are a good investment strategy.