Asia's First Bitcoin and Ether Futures ETFs
Southern Bitcoin Futures ETF (3066.HK) and Southern Ether Futures ETF (3068.HK) made history as the first cryptocurrency futures ETFs listed in Asia on the Hong Kong Stock Exchange. These actively managed funds track Bitcoin and Ether prices through CME Group futures contracts, offering investors regulated exposure to the digital asset class.
Key Product Features:
- Listing Price: HK$7.75 per unit (100 shares per lot)
- Management Fee: 1.99% annually
- Initial Investments: $53.89M (3066.HK) and $19.74M (3068.HK)
- Underlying Assets: CME-listed Bitcoin/Ether futures contracts
The Rising Virtual Asset Market
Virtual assets have emerged as a transformative asset class with a peak market capitalization of $3 trillion in November 2021. Bitcoin and Ether dominate the crypto market, representing 39% and 17% of total market share respectively.
Market Dynamics:
- Global crypto ETP inflows surged 100x from $75M (2019) to $7.677B (2021)
- Bitcoin demonstrated 75% price volatility between 2021-2022
- Over 600 exchanges trade 10,000+ virtual assets worldwide
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Regulatory Milestone for Asian Investors
Hong Kong's Securities and Futures Commission (SFC) approved virtual asset futures ETFs for public offering on October 31, 2022, marking a watershed moment for retail access in Asia.
Investor Advantages:
- Traditional brokerage account accessibility
- Minimum investments ~$100 USD
- Institutional-grade custodial protections
- Flexible portfolio management strategies
"These ETFs represent a crucial milestone for Asia's digital asset ecosystem," said Tim McCourt of CME Group. "The demand for regulated exposure to crypto through liquid futures contracts continues growing exponentially."
CSOP's Innovation Leadership
As Hong Kong's second-largest ETF provider, CSOP continues its tradition of pioneering investment solutions since 2008.
"Being first-to-market with these virtual asset ETFs demonstrates our commitment to delivering innovative tools that meet evolving investor needs," stated CEO Ding Chen. "We've created a transparent, regulated pathway for tracking crypto performance through conventional instruments."
FAQ Section
Q: How do these ETFs differ from holding actual cryptocurrency?
A: They provide exposure through regulated futures contracts rather than direct crypto ownership, eliminating wallet security concerns while maintaining price correlation.
Q: What risk management features are implemented?
A: The funds employ active management strategies to address market volatility, with segregated custodial assets and SFC oversight protecting investors.
Q: Can mainland Chinese investors participate?
A: These products aren't offered directly in mainland China. Investors must comply with all local regulations regarding foreign securities investments.
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Disclaimer
These SFC-authorized ETFs don't constitute official recommendations. Investors should consult financial advisors regarding suitability. CSOP disclaims liability for third-party data accuracy. Investment involves risks - past performance doesn't indicate future results.
Data Sources: CoinGecko, Grayscale, Bloomberg (November 2022)