CSOP Bitcoin Futures ETF (3066.HK) and CSOP Ether Futures ETF (3068.HK) to be listed on HKEX
HONG KONG, 15 December 2022–(BUSINESS WIRE)–CSOP Bitcoin Futures ETF (3066.HK) and CSOP Ether Futures ETF (3068.HK) will be listed on the Hong Kong Stock Exchange on December 16, 2022 as Asia’s first listed Bitcoin and Ether futures ETFs. To capture the performance of Bitcoin and Ether, 3066.HK and 3068.HK are actively managed to invest in Chicago Mercantile Exchange (“CME Group”) listed Bitcoin and Ether futures to track their respective prices. With the same listing price of around HKD 7.75 per unit, trading lot of 100 and management fee of 1.99%, 3066.HK and 3068.HK have received USD 53.89 million and USD 19.74 million in initial investment respectively.
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CSOP Bitcoin Futures ETF (3066.HK) and CSOP Ether Futures ETF (3068.HK) to list on HKEX (Graphic: Business Wire)
“Virtual Asset” refers to digital representations of value which may be in the form of digital tokens (such as utility tokens, stablecoins or security or asset-backed tokens) or other virtual goods, crypto-assets or other assets of substantially the same nature.1 Global virtual asset market capitalization reached a record high of USD 3 trillion in November 2021, with 10,000+ types of crypto and 600+ exchanges.2 Virtual assets have become an asset class too big to ignore, and with great potential to grow further. Bitcoin and Ether are the most representative crypto-assets in the current market and take up a total market capitalization of 39% and 17% respectively.3 As of the end of October 31, 2021, net inflows into ETPs tracking the performance of global virtual assets increased 100 times to USD 7,677 million compared to USD 75 million in 2019.4 As an emerging asset class, virtual assets have experienced large price volatility. As an example, Bitcoin’s price rose to over USD 66,000 each in 2021 and then retreated about 75% from its peak in late November 2022, which could incubate another round of returns.5
In light of the growing market acceptance of virtual assets, Hong Kong’s Securities and Futures Commission announced to allow the launch of ETFs tracking crypto futures for public offering on October 31, 2022, marking the first time Asian retail investors can gain this type of exposure to virtual assets.6 The newly listed virtual asset futures ETFs are easy for investors to buy and sell through traditional brokerage or investment accounts with a minimum investment of around $100. Active investment strategies have been adopted to allow flexibility in portfolio composition, rolling strategy and handling of any market disturbances. Furthermore, the fund assets of futures ETFs for virtual assets are maintained by an independent custodian with good protection and strict regulation.
“The approval of two new ETFs based on CME Bitcoin and Ether futures marks an important milestone for the digital asset ecosystem in Asia,” said Tim McCourt, Global Head of Equity and FX Products, CME Group. “The listing of these ETFs underscores the robust growth and growing demand for exposure to bitcoin and ether via CME Group’s transparent, highly regulated and deeply liquid benchmark futures contracts – both of which have seen a combined 20% increase in average daily volume versus 2021 . In addition, the introduction of these funds, from firms such as CSOP Asset Management, will create new opportunities for a wide range of institutional and private investors.”
“CSOP is the first Chinese offshore asset management company established in Hong Kong. Since its establishment in 2008, CSOP has been committed to bringing high-quality and creative investment tools to Hong Kong investors. Today, we are the first ETF manager to bring the most cutting-edge virtual asset ETF products to Hong Kong and Asian retail investors in a flexible and transparent manner. Investors can easily track Bitcoin and Ether prices with the conventional investment tool of ETFs,” concludes Ding Chen, CEO of CSOP.
About CSOP
CSOP Asset Management (“CSOP”) is a leading ETF issuer in Asia, the second largest in Hong Kong# . Founded in 2008, CSOP was the first offshore asset manager set up by a Chinese asset management company. Dedicated to providing best-in-class investment solutions, CSOP serves institutional and retail clients with a diversified offering of index-tracking exchange-traded funds/products, actively managed mutual funds and investment advisory services, covering strategies from equity and fixed income products to the money market. and quantitative means.
# Bloomberg, from October 2022, excluding the SPDR Gold Trust
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
IMPORTANT: Investment involves risk. The investment value can rise or fall. Information about past performance presented is not an indication of future performance. Investors should refer to the prospectus and key product facts for further details, including product characteristics and risk factors. Investors should not rely on this document alone to make investment decisions.
The CSOP Ether Futures ETF is a sub-fund of the CSOP ETF Series, which is an umbrella fund established under the laws of Hong Kong. It is an actively managed exchange-traded fund. CSOP Ether Futures ETF units are traded on the Hong Kong stock exchange as shares. The CSOP Ether Futures ETF is denominated in USD.
The CSOP Bitcoin Futures ETF is a sub-fund of the CSOP ETF series, which is an umbrella fund established under Hong Kong law. It is an actively managed exchange-traded fund. CSOP Bitcoin Futures ETF units are traded on the Hong Kong stock exchange as stocks. The CSOP Bitcoin Futures ETF is denominated in USD.
The CSOP Bitcoin Futures ETF and the CSOP Ether Futures ETF are not offered or sold directly or indirectly in Mainland China to or for the benefit of legal entities or individuals from Mainland China. Furthermore, no Mainland China entity or individual may directly or indirectly purchase units of the CSOP Bitcoin Futures ETF or the CSOP Ether Futures ETF without obtaining all required prior approvals from the Mainland China authorities, whether statutory or otherwise.
Investors should read the relevant prospectuses and product key fact statements in detail before making any investment decision.
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1 For details, see the SFC Circular
2 CoinGecko
3 CoinGecko
4 Grayscale
5 Coindesk
6 CSOP, Bloomberg, November 2022
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Contacts
For further information, please contact
CSOP Asset Management Limited
Larry Wang / 3406 5613 / [email protected]
Tina Shu / 3406 5675 / [email protected]
