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

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

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.'

Lack of Regulatory Oversight Deters Investors From Local Exchanges

Benny Mau of China Securities International Finance Holdings outlined the concerns held by many Hong Kong-based traders, stating 'Bitcoin and other digital currencies are basically not regulated in Hong Kong because they are traded like commodities. If the digital currency platforms have a problem or are hacked, the investors may suffer losses because the regulators might not do anything for them. This has discouraged many Hong Kong investors from trading digital currencies in Hong Kong.'

'Instead, they're trading them on the US exchanges, which are regulated. The futures prices may go up and down substantially but investors do not need to think about the counterparty risk or worry about the platforms having a problem. This is why bitcoin futures in the US are more attractive to Hong Kong investors, Mr. Mau added.'

Shifting Market Conditions

'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.



Need to calculate your bitcoin holdings' Check our tools section.

The post Hong Kong Crypto Traders Turn to U.S. Futures Markets appeared first on Bitcoin News.

2298


Subscribe cryptonews in Twitter!

Read us in Telegram!

Cryptonews © 2017