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Monday, February 6, 2023

Hong Kong’s first batch of “cryptocurrency futures ETFs” debut! Listed and traded on December 16

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Hong Kong ushered in the first batch of cryptocurrency futures ETFs, CSOP Bitcoin Futures ETF (3066.HK) and CSOP Ethereum Futures ETF (3068.HK) launched by CSOP Asset Management Co., Ltd. It will be officially listed on the Stock Exchange on December 16. The Hong Kong Securities Regulatory Commission announced on the same day that eligible cryptocurrency futures ETFs are allowed to be offered publicly in Hong Kong.

It is worth noting that these two upcoming ETFs are strictly regulated by the Hong Kong Securities Regulatory Commission, but they will not invest directly in cryptocurrencies, but will invest in CME Group’s Bitcoin futures and Ethereum futures, so prices may fluctuate. There is a large deviation from the spot price.

Regarding the cryptocurrency futures ETF launched this time, the relevant person in charge of CSOP said that for retail investors, cryptocurrency products are more complex than traditional finance. Using futures to track cryptocurrencies and then “integrating” them into ETFs can reduce The complexity of the product makes it easier for retail investors to understand related investment products and improves the convenience of the product. At the same time, under the strict supervision of the Hong Kong Securities Regulatory Commission, it can also help the orderly development of the industry, promote the combination of innovation and supervision, and create more investment opportunities.

However, CSOP did not forget to remind investors that investing in CME Group’s cryptocurrency futures involves specific risks, such as high volatility, leverage, high rollover costs, and margin risks, and emphasized that the value of cryptocurrency futures ETFs can vary. In the short term, it has fallen sharply, including falling to zero, so investing in CSOP Bitcoin and Ethereum Futures ETFs may still lose most or all of your investment.

CSOP stated that investors in the secondary market can buy and sell units of cryptocurrency futures ETFs on the SEHK through their securities brokers at any time when the SEHK is open. 100 shares per lot.

These two products have opened pre-subscription on online retail channels such as Huasheng Securities earlier today (13th). The admission fee is 780 Hong Kong dollars, and each share is priced at 7.8 Hong Kong dollars per share.

In addition, other participating dealers include: Mirae Asset Securities (Hong Kong) Co., Ltd., Korea Investment Securities Asia Co., Ltd., ABN AMRO Clearing Hong Kong Limited, KGI Securities Asia Co., Ltd., SinoPac Securities (Asia) Co., Ltd. Company and Yucheng Global Market Co., Ltd.

As early as October 31, when the Financial Secretary of Hong Kong released the “Policy Declaration on the Development of Virtual Assets in Hong Kong”, it clarified the government’s policy stance and guidelines for the virtual asset industry and ecosystem . Currency ETFs are welcome.

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Disclaimer

Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

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