Hong Kong Launches Asia’s First Inverse Bitcoin ETF

• Hong Kong launches Asia’s first inverse Bitcoin ETF, allowing profits from Bitcoin price declines.
• The ETF, managed by CSOP, takes short positions on CME Bitcoin futures, trading on HKEX at 7.8 HKD per unit.
• Hong Kong strengthens its crypto hub status, targeting $50-100M in assets with the new inverse Bitcoin ETF.

Hong Kong is pioneering a new financial instrument with the launch of Asia’s first Bitcoin futures inverse ETF. The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376. HK), managed by CSOP Asset Management Ltd., enables investors to profit from declines in Bitcoin prices by taking short positions on Bitcoin futures contracts. 

Trading begins on the Hong Kong Stock Exchange (HKEX) on July 22, with an initial price of 7.8 Hong Kong dollars per unit.

This ETF is an important part of Hong Kong’s plan to become a top crypto-friendly financial center. The CSOP Bitcoin Future Daily (-1x) Inverse Product makes money when the S&P Bitcoin Futures Index goes down.

This means the ETF’s value goes up when Bitcoin prices go down. The ETF, priced in US dollars, does this by taking short positions on Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME).

Hong Kong has been developing regulations to encourage the development of cryptocurrency. The introduction of this inverse Bitcoin ETF is in line with Hong Kong’s objective of providing a greater selection of financial goods. Earlier this year, Hong Kong demonstrated its commitment to growing its financial products related to cryptocurrencies by introducing six spot ETFs for Bitcoin and Ether.

The inverse Bitcoin ETF is being introduced at a time when Bitcoin prices are very unstable. Prices fell below $54,000 in early July but recently bounced back to $67,234 due to political events in the United States.

The CEO of CSOP Asset Management, Ding Chen, stated that investors in Singapore, Korea, and Japan might be quite interested in the new ETF. Over the following three years, the company hopes to amass between $50 million and $100 million in assets, with a 1.99% management fee.

The launch of the CSOP Bitcoin Future Daily (-1x) Inverse Product shows Hong Kong’s dedication to improving its financial market. By offering a product that helps investors protect against Bitcoin price drops, Hong Kong strengthens its reputation as a modern financial center.

The launch of the ETF shows Hong Kong’s proactive effort to include new financial tools in its market, giving investors more ways to manage the changing cryptocurrency landscape.