Onchain analytics and data insights company CryptoQuant.com claims that China has shown strong signs of reentering the cryptocurrency market. Growing volumes in the spot and derivatives markets are among these indicators, and the first Hong Kong-based bitcoin future ETF generated more than $74 million on its first day of trading.
The first ethereum and bitcoin futures ETFs were listed in the Hong Kong stock exchanges in December 2022 by China's Southern Asset Management affiliate, CSOP Asset Management. More than $74 million was raised for the organization's start-up costs ($54 million and $20 million, respectively).
The approval of the ETF, according to Tim McCourt, global head of equities FX products at CME, is crucial for the uptake of virtual currencies in Asia. Despite the declines, he said, Bitcoin and Ethereum saw a 20% exponential increase in daily volumes in 2022 compared to 2021.
“The listing of these ETFs underscores the robust growth and increasing client demand for exposure to bitcoin and ether via CME Group’s transparent, highly regulated, and deeply liquid benchmark futures contracts”
China was ranked fourth internationally and as one of East Asia's largest crypto marketplaces by transaction volume in October 2022. 70% of the world's crypto-critical applications are thought to be in the hands of the state.
Between June 2021 and July 2022, the state signed more than $220 billion in agreements, surpassing Japan and South Korea, which had bigger investment stakes in the ecosystem.
