An ETF offering double daily long exposure to Coinbase (07711) rose more than 5%. At the time of writing, it was up 5.52% to HKD 33.28, with a turnover of HKD 1.4555 million.

The move followed an announcement on Friday, May 29th, by the U.S. Commodity Futures Trading Commission (CFTC) approving the listing of perpetual futures contracts tied to the spot price of Bitcoin. The regulator stated it would review applications for contracts linked to other assets on a case-by-case basis.

This formal approval brings the high-leverage trading instruments, which previously operated in a regulatory grey area, into the traditional market framework. Prediction market operator Kalshi and cryptocurrency exchange Coinbase (COIN.US) subsequently announced they had received CFTC approval and would "soon" launch regulated perpetual contract products in the United States.

Notably, this regulatory shift is expected to significantly expand the use of these high-risk, high-leverage contracts in the U.S. market. Typically, perpetual contracts allow traders to place leveraged bets on the price movements of various assets with leverage as high as 40 times.