Hong Kong is set to make history on July 23 with the launch of Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK). This new exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) aims to provide investors with an opportunity to profit from declines in Bitcoin’s price.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product will be listed on the Hong Kong Stock Exchange (HKEX) with an initial price of approximately 7.8 Hong Kong dollars (HKD) per unit. The ETF is designed to mirror the inverse daily performance of the S&P Bitcoin Futures Index through a futures-based replication strategy. This strategy involves direct investments in spot-month Bitcoin futures traded on the Chicago Mercantile Exchange (CME).
Ms. Ding Chen, CEO of CSOP Asset Management, highlighted the company’s commitment to offering comprehensive and diversified investment products. She also emphasized that they are currently the leading provider of Leveraged and Inverse products in Hong Kong, with a market share of 99%. The introduction of this new Bitcoin inverse product aims to provide investors with opportunities to profit from declines in Bitcoin’s value amidst a volatile market.
The launch of the CSOP Bitcoin Futures Daily (-1x) Inverse Product is a strategic move for CSOP in expanding its presence within the Asia-Pacific region. This release follows the successful introduction of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, one of the first crypto-linked ETFs in the region. Furthermore, HKEX has been actively trading spot crypto ETFs since late 2022, starting with CSOP’s Bitcoin Futures ETF and Ether Futures ETF.
Data compiled by Bloomberg indicates that inverse crypto exchange-traded products have attracted approximately $106 million globally to date. The largest of these products is the Short Bitcoin Strategy ETF from ProShares Advisors LLC, which has amassed $62.5 million in assets with a 1.33% management fee. In Hong Kong, the total assets held by the six Bitcoin and Ether ETFs amount to $362 million.
The introduction of Asia’s first Bitcoin futures inverse product in Hong Kong marks a significant milestone in the region’s cryptocurrency market. As investors continue to navigate the volatility of digital assets, products like the CSOP Bitcoin Futures Daily (-1x) Inverse Product provide unique opportunities for both profit and risk management. As the market evolves, we can expect to see further innovation and growth in the exchange-traded crypto space.
