HKEX adds Crypto ETFs tracking BTC and ETH futures contracts traded on CME

Rick Steves

“We look forward to welcoming more themed ETFs and more digital asset products to our markets in the months ahead.”

Hong Kong Exchanges and Clearing Limited (HKEX) has further expanded its product ecosystem by providing Hong Kong and international investors with Asia’s first crypto asset ETFs: CSOP Bitcoin Futures ETF (Stock code: 3066) and CSOP Ether Futures ETF (Stock code: 3068).

Both managed by CSOP Asset Management Limited, the two ETFs track the standardized, cash-settled Bitcoin futures contracts and Ether futures contracts traded on the Chicago Mercantile Exchange (CME) respectively.

More digital asset products in the months ahead

ETFs are one of the fastest-growing segments in HKEX’s markets, with the diversity of product available in Hong Kong continuing to expand in 2022: highlights have included the listings of the first metaverse ETF, the first carbon futures ETF, the first blockchain ETF, and the inclusion of ETFs in Stock Connect.

Wilfred Yiu, Chief Operating Officer and Co-Head of Markets at HKEX, said: “The two crypto asset ETFs listing today are an exciting addition to our increasingly large and diverse ETP ecosystem here in Hong Kong. They provide investors with exposure to the digital asset space for the first time in Asia and reflect both our ongoing commitment to, and the market’s appetite for, the digital economy. We look forward to welcoming more themed ETFs and more digital asset products to our markets in the months ahead.”

The average daily turnover of Exchange Traded Products (ETPs), including ETFs and Leveraged and Inverse Products (L&I Products), for the first 11 months increased 50 percent to HK$11.8 billion when compared with HK$7.8 billion for the same period last year.

As of November 2022, 168 ETPs were listed on HKEX, with a market capitalisation of HK$373.5 billion.

HKEX launched international carbon marketplace

The exchange operator has recently launched a new international carbon marketplace that seeks to connect capital with climate-related products and opportunities in Hong Kong, Mainland China, Asia and beyond.

Going by the name of Core Climate, the carbon marketplace will allow participants to source, hold, trade, settle and retire voluntary carbon credits through the Core Climate platform, thus facilitating transparent trading of carbon credits and instruments to support the global transition to Net Zero.

This marks another step in HKEX’s commitment to building a one-stop solution for trading, custody and settlement in international carbon markets.

Carbon credits on the platform will come from internationally-certified carbon projects from around the world, including carbon avoidance, reduction and removal projects. All projects listed on Core Climate are verified against international standards, such as the Verified Carbon Standard by Verra.

HKEX’s recent activity in the ESG field includes the launch of STAGE, an online portal providing information, access and transparency on a wide range of sustainable, green and social investment products. That was in 2020.

The exchange operator also supports market education on environmental, social, and governance factors through the “ESG Academy”.

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