Hong Kong to Unveil Bitcoin Inverse ETF
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Hong Kong will debut Asia’s first Bitcoin inverse product, the CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK). It is expected to be introduced on July 23.
This innovative exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) allows investors to profit from Bitcoin’s price declines.
CSOP’s Bitcoin Inverse ETF Launch in Hong Kong
The CSOP Bitcoin Futures Daily (-1x) Inverse Product will list on the Hong Kong Stock Exchange (HKEX) at approximately 7.8 Hong Kong dollars (HKD) per unit.
This ETF aims to replicate the inverse daily performance of the S&P Bitcoin Futures Index through a futures-based replication strategy, involving direct investments in spot-month Bitcoin futures on the Chicago Mercantile Exchange (CME).
The introduction of this futures-based inverse Bitcoin product in Hong Kong presents new opportunities for investors looking to profit from potential declines in Bitcoin’s value.
This launch comes after a volatile period for Bitcoin, with its price dipping below $54,000 in early July before rebounding due to optimistic pro-crypto sentiments linked to figures such as former President Donald Trump.
CSOP Expands Crypto Offerings in Asia-Pacific
The launch of the CSOP Bitcoin Futures Daily (-1x) Inverse Product signifies a significant step in CSOP’s expansion across the Asia-Pacific region. 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 been trading spot crypto ETFs, starting with CSOP’s Bitcoin Futures ETF and Ether Futures ETF, which track Bitcoin futures and Ether futures contracts traded on the CME.
Additionally, in January 2023, Samsung Asset Management Hong Kong introduced its own Bitcoin futures ETF. By April 29, these ETFs collectively managed assets worth approximately 1.3 billion HKD ($170 million).
Globally, inverse crypto exchange-traded products have drawn about $106 million, with the largest being the Short Bitcoin Strategy ETF from ProShares Advisors LLC, managing $62.5 million in assets with a 1.33% management fee.
In Hong Kong, the six Bitcoin and Ether ETFs collectively hold $362 million in assets. Meanwhile, spot Bitcoin ETFs launched in the U.S. in January have accumulated $60.7 billion in assets.
This new offering by CSOP reflects the growing interest and development in cryptocurrency investment products in Hong Kong and the broader Asia-Pacific region.
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