CSOP Launches Asia’s First Reverse Bitcoin ETF in Hong Kong
On July 23, Hong Kong will become the first platform in Asia to launch a reverse Bitcoin ETF with the introduction of the CSOP Bitcoin Futures Daily Inverse (-1x) fund. The new product from China Southern Asset Management (CSOP) is aimed at investors looking to profit from a decrease in the price of Bitcoin (BTC).
Investment Strategy
This inverse ETF is designed to provide investment results that closely track the daily performance of the S&P Bitcoin Futures Index. This means that the fund will seek to reflect the inverse price movements of Bitcoin, offering profits in the event of a decrease in its value.
Trading Details
The CSOP Bitcoin Futures Daily Inverse (-1x) fund will be traded on the Hong Kong Stock Exchange (HKEX) at a price of around 7.8 Hong Kong dollars per unit. This launch represents an important step for the cryptocurrency market in Asia, which will now be able to offer more diverse investment tools for participating in the fluctuations of the cryptocurrency market.
Market Growth
The Hong Kong Stock Exchange began trading cryptocurrency-based spot ETFs in late 2022, when CSOP introduced its Bitcoin futures ETFs and Ethereum futures ETFs (ETH). In January 2023, the Hong Kong investment company Samsung Asset Management also launched its Bitcoin-based investment product.
As of the end of April 2024, the total inflow of funds into all three cryptocurrency futures products listed on the HKEX amounted to 1.3 billion Hong Kong dollars, equivalent to approximately 170 million US dollars. This underscores the growing interest of investors in cryptocurrency assets and innovative financial instruments in the region.
