Hong Kong has marked a significant milestone in its virtual asset landscape with the launch of its first crypto futures ETFs. The two ETFs – CSOP Bitcoin Futures ETF (3066.HK) and CSOP Ether Futures ETF (3068.HK) – introduced by CSOP Asset Management, are set to commence trading on the Hong Kong Stock Exchange (HKEX) on December 16.
The Securities and Futures Commission (SFC) simultaneously announced its approval for qualified crypto futures ETFs to be publicly offered in Hong Kong, signaling a progressive step toward regulated crypto investment products.
Key Features of the New Crypto Futures ETFs
- Regulated Framework: Both ETFs operate under stringent SFC oversight but do not directly invest in cryptocurrencies. Instead, they track CME Group’s Bitcoin and Ether futures contracts, which may lead to price deviations from spot markets.
- Retail Accessibility: CSOP emphasizes that these ETFs simplify exposure to crypto for retail investors by bundling futures into a familiar ETF structure, reducing complexity.
- Risk Disclosure: CSOP warns investors of inherent risks, including high volatility, leverage effects, roll costs, and margin risks, noting that values can plummet to zero rapidly.
- Trading Mechanics: Units can be traded via brokers on HKEX in lots of 100 shares (priced at HKD 7.8/share), with an entry threshold of HKD 780.
👉 Explore crypto ETF trading strategies
Market Context and Government Support
The launch aligns with Hong Kong’s October 31 policy statement on virtual assets, where the government expressed openness to crypto ETFs as part of its strategy to foster a balanced ecosystem of innovation and regulation.
Participating Dealers Include:
- Mirae Asset Securities (HK)
- Korea Investment & Securities Asia
- ABN AMRO Clearing Hong Kong
- KGI Asia Limited
FAQs
Q: How do these ETFs differ from spot crypto ETFs?
A: They track futures, not actual cryptocurrencies, leading to potential pricing gaps due to contango/backwardation.
Q: What’s the minimum investment?
A: HKD 780 per lot (100 shares).
Q: Are these ETFs suitable for conservative investors?
A: No. Their high-risk nature suits only those comfortable with extreme volatility.
👉 Learn more about crypto futures risks
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investors should conduct independent research before engaging in transactions.