The largest bitcoin ETF in Hong Kong has grown five-fold since October.

Hong Kong bureau - As local investors sought to profit from the boom in the most popular cryptocurrency on the planet, the assets under management of the largest bitcoin futures exchange-traded fund in Hong Kong increased fivefold in the previous five months, reaching little over $100 million.

After authorizing just three cryptocurrency futures ETFs in late 2022, Hong Kong finally joined the crypto trading bandwagon in late 2023. Demand increased significantly in February, according to CSOP Asset Management, the manager of the CSOP Bitcoin Futures ETF.

According to Alessandro Zhu, deputy head of fixed income at CSOP Asset Management and supervisor of crypto products, investor interest has increased since the U.S. approved and launched spot bitcoin ETFs this year. This is due to the belief that the token's limited supply will cause prices to rise.

He also mentioned that demand has been encouraged by Bitcoin's substantially better performance compared to Hong Kong equities. Zhu pointed out that offshore Chinese banks may buy bitcoin exchange-traded funds (ETFs) in Hong Kong, despite the fact that trading cryptocurrencies is illegal in mainland China.

With a price of over $63,000 on Thursday, Bitcoin is getting close to its record high of nearly $69,000 set in November 2021, a gain of 45% in only the past month. Also benefiting this year is the CSOP Ether Futures ETF, which has seen its AUM double.

With an increase from $0.97 million in 2017 to $2.8 million this year, the CSOP Bitcoin Futures ETF is currently seeing daily turnover comparable to that of some of Hong Kong's most prominent real estate companies, such the Wharf

Because of the city's eagerness to become a virtual asset center, several in the market believe that Hong Kong may approve the first spot bitcoin ETF this year.

A huge number of spot bitcoin ETF applications to the Hong Kong Securities and Futures Commission in the past several months indicate that Hong Kong's bitcoin ETF is exhibiting positive indicators, according to Kennix Chan, executive director of Victory Securities.

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