Hong Kong Crypto Traders Turn to U.S. Futures Markets

hong-kong-crypto-traders-turn-to-u-s-futures-markets
2
12562 Total Views

Demand for Exposure to U.S. Bitcoin Futures Markets Surges among Hong Kong Traders

An increasing number of Hong Kong-based cryptocurrency traders are reportedly turning to U.S.-based bitcoin futures. The shift away from domestic markets has been spurred by a perception that the American futures markets receive greater regulatory oversight than Hong Kong’s unregulated cryptocurrency exchanges.

Demand for Exposure to U.S. Bitcoin Futures Markets Surges among Hong Kong Traders

The chairman of the Hong Kong Stockbrokers Association, Gary Cheung, told South China Morning Post that local futures brokers have reported an increase in trading activity on the American futures markets.

Mr. Cheung described the types of cryptocurrency typical traders seeking to access bitcoin futures markets, stating “There are two types of Hong Kong investors who like to trade US bitcoin futures. There are bitcoin miners and other investors who trade bitcoin and want to use the futures products to hedge. The others are normal futures investors who purely want to take profit created by speculative futures trading.”

Gary Leung, the chief executive officer of TD Ameritrade, also attested to the high demand for exposure to U.S-based bitcoin futures markets among Hong Kong-based customers, stating “We have received a lot of inquiries about bitcoin futures since we started operating in Hong Kong last October when the prices were surging.”

Shifting Market Conditions

Jasper Lo Cho-yan, a senior vice-president at Haitong International, has suggested that shifting market conditions may also be contributing to the perceived migration of Hong Kong traders away from local cryptocurrency exchanges.

“When bitcoin futures were launched last December, the bitcoin price was rising and everyone was optimistic. Now the price has tumbled and speculators may be finding it harder to make money. In addition, many governments are increasing regulation of bitcoin and other digital currencies. This has raised questions about the outlook for the futures products,” Jasper Lo Cho-yan said.

What is your response to the increasing demand for regulated bitcoin futures products among Hong Kong traders? Share your thoughts in the comments section below!

 

 

Disclaimer: The opinions communicated in this article do not represent the views of Coindelite or any of its team members. Coindelite is not responsible for the reliability of any of the data provided in Sponsored Stories/Press Releases, for example, this one.

2 Comments

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!