Hong Kong to Introduce Asia’s First Bitcoin(BTC) Futures Inverse Product

Hong Kong launched a Bitcoin ETF that allows investors to gamble against the cryptocurrency, becoming Asia’s first Bitcoin inverse product.

On July 23, Hong Kong will introduce Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376. HK). China Southern Asset Management Co., Ltd (CSOP) has launched a new exchange-traded fund (ETF) to allow investors to profit from dips in the price of Bitcoin.

Asia’s First Bitcoin Futures Inverse ETF

The CSOP Bitcoin Futures Daily (-1x) Inverse Product will be listed on the Hong Kong Stock Exchange (HKEX) at an initial price of approximately 7.8 Hong Kong dollars (HKD) per unit. Its purpose is to provide investment results that closely mirror the inverse daily performance of the S&P Bitcoin Futures Index.

This is accomplished using a futures-based replication technique, which entails direct investments in spot-month Bitcoin futures offered on the Chicago Mercantile Exchange. Ms. Ding Chen, CEO of CSOP Asset Management, stated, “As an ETF issuer valued by investors in the APAC area, CSOP has always sought to provide comprehensive and diverse investment solutions. 

She said that introducing Hong Kong’s first futures-based inverse Bitcoin product allows investors to profit from the decrease in Bitcoin value. This launch comes after a turbulent period for Bitcoin investors, with the cryptocurrency’s value falling below $54,000 in early July before rising on optimism about pro-crypto sentiments, especially those related to former President Donald Trump’s probable political future.

CSOP Expansion In The Asia-Pacific

The release of the CSOP Bitcoin Futures Daily (-1x) Inverse Product is another step towards CSOP’s development in Asia-Pacific. It follows the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, one of the region’s first crypto-linked ETFs.

Since late 2022, HKEX has traded spot cryptocurrency ETFs, beginning with CSOP’s Bitcoin Futures ETF and Ether Futures ETF. These products monitor the CME’s cash-settled Bitcoin and Ether futures contracts.

In January 2023, Samsung Asset Management Hong Kong launched a Bitcoin futures ETF. As of April 29, these ETFs have 1.3 billion HKD in assets under management, which is equivalent to around $170 million.

The largest of them is ProShares Advisors LLC’s Short Bitcoin Strategy ETF, which has $62.5 million in assets and a management fee of 1.33 percent.

In Hong Kong, the total assets owned by the six Bitcoin and Ether ETFs now amount to $362 million. Meanwhile, the six Bitcoin ETFs established in the United States in January had acquired a total of $60.7 billion in assets.

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