The assets under management (AUM) of Hong Kong’s leading futures Bitcoin exchange-traded fund (ETF) have surged by an astounding 500%, breaching the $100 million milestone since October 2023.
In an exclusive interview with Reuters, CSOP Asset Management, a prominent capital market firm headquartered in Hong Kong, disclosed that its exchange-traded product, the CSOP Bitcoin Futures ETF, has witnessed a remarkable five-fold increase in AUM over the past five months, soaring to over $100 million. The surge in AUM comes as local investors capitalize on the ongoing crypto rally.
Alessandro Zhu, the deputy head of fixed income at CSOP Asset Management overseeing crypto products, attributed the surging demand to the recent approval of spot Bitcoin ETFs in the United States by the U.S. Securities and Exchange Commission (SEC). Investors are drawn to Bitcoin’s limited supply, capped at 21 million BTC, believing it will drive prices higher, especially given Bitcoin’s outperformance compared to Hong Kong stocks.
With trading volumes on the rise, the CSOP Bitcoin Futures ETF has witnessed a substantial surge in average daily turnover, reaching $2.8 million. This represents a significant uptick of 188% compared to last year’s turnover of $0.97 million.
Hong Kong continues to emerge as a thriving hub for crypto-related activities, with increasing involvement from financial institutions. Harvest Fund Hong Kong, for instance, recently filed for a spot Bitcoin ETF with the Hong Kong Securities Regulatory Commission, aligning with local authorities’ indication of openness towards approving spot crypto ETFs.
Moreover, Harvest Fund’s subsidiary, Harvest Global Investments, is reportedly in discussions with the Hong Kong Monetary Authority regarding planned stablecoin trials within regulatory sandboxes, further highlighting the city’s growing significance in the global crypto landscape.
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