Hong Kong Set to Launch Asia’s First Bitcoin Futures Inverse Offering
On July 23, Asia is set to witness the launch of the first Bitcoin futures inverse product with the introduction of the CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK) in Hong Kong.
China Southern Asset Management Co., Ltd (CSOP) is the mastermind behind this new exchange-traded fund (ETF) designed to allow investors to capitalize on Bitcoin price declines.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product will make its debut on the Hong Kong Stock Exchange (HKEX) priced at around 7.8 Hong Kong dollars (HKD) per unit. Its primary objective is to mirror the inverse daily performance of the S&P Bitcoin Futures Index through a futures-based replication strategy involving investments in spot-month Bitcoin futures on the Chicago Mercantile Exchange (CME).
CEO of CSOP Asset Management, Ms. Ding Chen, emphasized the company’s commitment to offering diversified investment products, highlighting their status as the leading provider of Leveraged and Inverse products in Hong Kong with a market share of 99%. She underscored that the launch of the first futures-based inverse Bitcoin product in Hong Kong presents investors with opportunities to profit from Bitcoin value downturns.
This development follows a period of volatility for Bitcoin investors, witnessing the cryptocurrency’s value dipping below $54,000 in early July before rebounding on positive sentiments surrounding the future of pro-crypto inclinations, including those linked to former President Donald Trump.
The introduction of the CSOP Bitcoin Futures Daily (-1x) Inverse Product signifies another stride in CSOP’s expansion in the Asia-Pacific region. It builds upon the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, one of the initial crypto-linked ETFs in the region.
Since late 2022, HKEX has been facilitating the trading of spot crypto ETFs, commencing with CSOP’s Bitcoin Futures ETF and Ether Futures ETF, which track Bitcoin and Ether futures cash-settled contracts on the CME. Samsung Asset Management Hong Kong also introduced a Bitcoin futures ETF in January 2023.
Globally, inverse crypto exchange-traded products have attracted approximately $106 million to date, with the Short Bitcoin Strategy ETF from ProShares Advisors LLC being the largest, amassing $62.5 million in assets. In Hong Kong, the total assets held by the six Bitcoin and Ether ETFs now amount to $362 million.
The spot Bitcoin ETFs launched in the U.S. in January have collectively accumulated $60.7 billion in assets, reflecting the growing interest and investment in cryptocurrency-related products.
