In a recent interview with Reuters, Hong Kong-based capital market firm CSOP Asset Management revealed that its exchange-traded product, CSOP Bitcoin Futures ETF, has experienced remarkable growth, with assets under management (AUM) soaring to just over $100 million over the past five months. This surge comes as local investors actively engage in the ongoing crypto rally.
Alessandro Zhu, Deputy Head of Fixed Income at CSOP Asset Management, attributes this surge in demand to various factors, including the recent approval of spot Bitcoin ETFs in the U.S. by the Securities and Exchange Commission (SEC) in January. Investors are also drawn to Bitcoin’s limited supply, capped at 21 million BTC, which is expected to drive prices higher. Notably, Bitcoin has outperformed Hong Kong stocks, further fueling investor interest in crypto assets.
The increasing popularity of crypto-related products is evident as trading volumes for the CSOP Bitcoin Futures ETF continue to grow. The average daily turnover has reached $2.8 million, marking a significant 188% increase compared to the previous year.
Hong Kong remains a vibrant hub for crypto activities, with several financial institutions showing keen interest in expanding their presence in the city. Harvest Fund Hong Kong is among the nearly 10 hedge funds preparing to launch spot crypto ETFs, following indications of regulatory approval from the Hong Kong Securities Regulatory Commission. Harvest Global Investments, a subsidiary of Harvest Fund, is also in discussions with the Hong Kong Monetary Authority regarding planned stablecoin trials within regulatory sandboxes, showcasing the growing momentum of crypto adoption in the region.
