Written by Summer season Jen

HONG KONG (Reuters) – Hong Kong's largest Bitcoin futures exchange-traded fund (ETF) has seen its belongings beneath administration quintuple previously 5 months, as native buyers observe the rally on the earth's most well-known cryptocurrency. It was over a billion {dollars}.

Hong Kong is a relative latecomer to crypto buying and selling, approving its first three crypto futures ETFs in late 2022.

CSOP Asset Administration, which manages the CSOP ETF, mentioned demand elevated considerably in February.

Alessandro Zhu, deputy head of fastened earnings at CSOP Asset Administration, who oversees crypto merchandise, mentioned the approval and launch of a spot Bitcoin ETF within the U.S. this 12 months will push costs larger on account of restricted Bitcoin provide. He mentioned there’s rising demand from buyers who imagine that that is the case.

Important outperformance over Hong Kong shares additionally boosted demand, he added.

Zhu famous that though cryptocurrency buying and selling is prohibited in mainland China, Chinese language offshore monetary establishments might spend money on Bitcoin ETFs in Hong Kong.

Bitcoin is up 45% this month alone and was buying and selling round $63,000 as of Thursday, near its November 2021 all-time excessive of $69,000.

The belongings beneath administration of the CSOP Ether Futures ETF additionally benefited, doubling this 12 months.

The quantity has elevated quickly.

The CSOP Bitcoin Futures ETF's common each day turnover this 12 months has soared to $2.8 million in comparison with $970,000 final 12 months, and is now on par with the gross sales of some Hong Kong actual property giants similar to Wharf (Holdings). It has turn out to be.

Some market contributors anticipate Hong Kong to approve its first spot Bitcoin ETF this 12 months, as authorities are eager to develop town as a hub for crypto belongings.

“Bitcoin ETFs in Hong Kong are exhibiting optimistic indicators as we’ve got seen a lot of (spot Bitcoin ETF) purposes to the Hong Kong Securities and Futures Fee over the previous few months,” mentioned Kennix Chan, govt director of Victory Securities. .