Hong Kong will introduce Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK), on July 23.
The objective of the new exchange-traded fund (ETF) by CSOP Asset Management, one of the largest asset administrators in China, is to provide investors with a means of profiting from drops in the price of Bitcoin.
Following the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, this development continues the firm’s expansion in the Asia-Pacific region.
About the Inverse Bitcoin ETF
The CSOP Bitcoin Futures Daily (-1x) Inverse Product intends to provide investment results that closely mirror the inverse daily performance of the S&P Bitcoin Futures Index.
This inverse product accomplishes this by employing a futures-based replication strategy that invests directly in spot-month Bitcoin Futures on the Chicago Mercantile Exchange.
The product is scheduled to be listed on the Hong Kong Stock Exchange (HKEX) with a listing price of approximately 7.8 Hong Kong dollars per unit, as indicated in a CSOP company post on July 22.
Hong Kong crypto exchange-traded funds (ETFs)
Since the introduction of the Bitcoin Futures ETF and Ether Futures ETF by CSOP in late 2022, HKEX has been trading spot crypto ETFs.
In January 2023, Samsung Asset Management Hong Kong’s Bitcoin future ETF followed the two products, which monitor BTC futures and Ether futures cash-settled contracts traded on the CME.
As of April 29, the three futures products of the HKEX crypto ETFs had accumulated 1.3 billion $HK valued at $170 million in assets under management.
