Hong Kong’s CSOP Bitcoin Futures ETF has experienced a significant increase in trading volume and net inflow amid the recent rally of Bitcoin (BTC). According to data from Yahoo! Finance, on October 24, the ETF recorded a trading volume of HK$175.87 million, accompanied by net inflows of HK$138 million. These figures represent the highest trading volume and net inflow since the ETF’s listing.
The CSOP Bitcoin Futures ETF, launched in December last year, is Hong Kong’s first Bitcoin futures exchange-traded fund. Managed by CSOP Asset Management Limited, the ETF tracks standardized, cash-settled Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME).
The surge in trading activity and inflows for the CSOP Bitcoin Futures ETF reflects the growing interest and confidence in Bitcoin as the leading cryptocurrency continues to register more gains. Over the past 24 hours, the flagship cryptocurrency has gained more than 12%, reaching as high as $35,000 before trimming some gains. At the time of writing, BTC is trading at $34,613, according to data from CoinGecko.
Optimism Around the Launch of a Spot Bitcoin ETF
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,”
– Paul Grewal, Coinbase Chief Legal Officer
The reason behind the recent surge in Bitcoin’s price is increasing optimism around the launch of a spot Bitcoin ETF in the U.S. Coinbase Chief Legal Officer Paul Grewal expressed his optimism, stating that the Securities and Exchange Commission (SEC) will soon approve a spot Bitcoin ETF. He believes that the applications for ETFs should be granted based on the law.
Grewal also mentioned that a recent court ruling dealt a blow to the SEC. The court ruled in favor of Grayscale’s bid to convert its GBTC Bitcoin fund into an ETF, indicating that the regulator had no grounds to deny the conversion. This ruling could potentially pave the way for the approval of a Bitcoin-related ETF in the coming months.
Matrixport, a crypto financial services platform, has predicted a major Bitcoin rally if a spot ETF hits the market. Comparing it to precious metals ETFs, which have a market cap of around $120 billion, Matrixport suggests that if 10-20% of precious metal ETF investors consider diversifying into a Bitcoin ETF as a hedge against monetary debasement and inflation, there could be an inflow of $12 to $24 billion into the Bitcoin ETF.
