Investment firms show extraordinary interest in cryptocurrency ETF

Despite last year’s 48% drop in cryptocurrency prices. Brown Brothers Harriman survey participants plan to add digital asset ETF to their portfolios this year

According to a survey conducted by Brown Brothers Harriman (BBH), 74% of institutional investors. The survey resulted in an “extraordinary” or heightened interest in cryptocurrency ETF.

On April 3, BBH released the results of its 2023 Global ETF Investor Servey. The survey surveyed 325 institutional investors, financial advisors and fund managers from the U.S., Europe and China.

According to the report, despite last year’s drop in cryptocurrency prices. In it, a quarter of respondents intend to devote more money to investing in ETF for digital assets. Institutional investors showed the greatest interest, with nearly three-quarters extremely interested in adding cryptocurrency ETF to their portfolios.

Our experts note that this year, 48% of survey participants plan to do so: 58% of investors from China, 55% – from the United States and only 29% – from Europe.

The report explains that the growing interest in cryptocurrency ETFs is partly due to investors adjusting to market volatility. As well as diversifying portfolios and adding more innovative products. And regulatory initiatives such as the MiCA (Markets in Crypto Assets) project of the European Union. It can significantly “reduce the risk” of cryptocurrency investments for asset managers. And provide them “an additional level of comfort” when working with crypto exchanges.

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ETF funds based on cryptocurrency futures will start trading in Hong Kong

Two exchange traded ETF funds raised a total of $73.6 million on the eve of their debut on Hong Kong Stock Exchange. Crypto-Upvotes expert review

Two exchange-traded funds (ETF) will begin trading on the Hong Kong Stock Exchange (HKEX) on December 16. They are based on cryptocurrency futures. These are the first funds of their kind in Hong Kong. CSOP Asset Management’s ETF invest in Bitcoin and Ethereum futures. Which are listed on the Chicago Mercantile Exchange (CME Group) in the United States. They are the only cryptocurrency assets allowed by the Hong Kong Securities and Futures Commission (SFC).

Two funds raised a total of $73.6 million before their debut on the Hong Kong Stock Exchange. The larger one, CSOP Bitcoin Futures ETF (3066.HK), raised $53.9 million, according to the management company. That’s more than the ProShares Bitcoin Strategy ETF, the first U.S. Bitcoin futures ETF. Which began trading on the New York Stock Exchange (NYSE) in October 2021 with an initial capital of $20 million.

Crypto-futures ETF demonstrate that Hong Kong remains open-minded about the development of virtual assets. This is despite recent problems in crypto-industry, said Yi Wang, head of quantitative investment at CSOP. He noted that since ETF do not invest directly in Bitcoin and are traded on regulated exchanges in the U.S. and Hong Kong. Investors will have more regulatory protections than tokens traded on unregulated platforms.

The first futures-based Bitcoin-ETF were approved in the U.S. back in 2021. However, the U.S. Securities and Exchange Commission (SEC) has so far rejected all applications to launch a spot exchange-traded fund (ETF). SEC head Gary Gensler attributed this to the fact that applications for such funds do not meet the Securities Act’s standards for cracking down on fraudulent or manipulative practices.

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