Crypto ETF Now Available on HKEX: Get Exposure to Bitcoin Without Buying It

• The CSOP Bitcoin Futures ETF (3066.HK) will be available for trading on the Hong Kong Stock Exchange starting December 16.
• The ETF will track the Chicago Mercantile Exchange’s Bitcoin ETFs through active investment and has received approximately $53 million in initial investments.
• The approval of the ETFs signals acceptance of traditional finance in the Asian markets but it is not backed by actual bitcoin.

The Hong Kong Stock Exchange (HKEX) has announced that the CSOP Bitcoin Futures ETF (3066.HK) will be available for trading starting December 16. The ETF will track the Chicago Mercantile Exchange’s Bitcoin ETFs through active investment, allowing investors to gain exposure to the cryptocurrency market without having to actually buy bitcoin.

The ETF has received approximately $53 million in initial investments and has been listed at a price of $1 (HKD 7.75). The approval of the ETFs has been viewed as a positive sign of acceptance amongst traditional finance in the Asian markets. However, it is important to note that the ETF is not actually backed by a reserve of actual bitcoin – it only tracks the Bitcoin ETFs.

There are claims that this type of “paper bitcoin” can suppress the price of real bitcoin by diverting demand away from the real asset. The first Bitcoin futures ETF to be approved in the US was the NYSE-listed ProShares Bitcoin Strategy ETF which launched in October 2021, with $1 billion in trading volume on its first day.

The Hong Kong Securities and Futures Commission announced that it would allow the launch of ETFs tracking crypto futures for public offering on 31 October 2022, marking the first time Asian retail investors can get this type of exposure to virtual assets. This move was seen as a sign of increasing market acceptance of virtual assets.

All in all, the approval of the CSOP Bitcoin Futures ETF is a positive sign for the cryptocurrency industry, as it signals acceptance amongst traditional finance in the Asian markets. While the ETF itself is not actually backed by real bitcoin, it provides investors with the opportunity to gain exposure to the cryptocurrency market without having to purchase actual bitcoin.