Hong Kong Launches Asia’s First ‘Inverse Bitcoin ETF’
Asia’s first inverse Bitcoin ETF, which allows investors to bet on a decline in the cryptocurrency, will debut in Hong Kong on Tuesday.
Hong Kong-based CSOP Asset Management has announced that it will launch the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the city’s stock exchange on Tuesday morning.
The ETF is expected to benefit from rising demand to capitalize on volatile cryptocurrency trading. After the first batch of spot crypto ETFs went public in Hong Kong in April, Bitcoin had a bumpy second quarter, falling more than 12 percent.
“The first futures-based inverse Bitcoin product listed in Hong Kong creates opportunities for investors to profit from downward movements in Bitcoin,” Ding Chen, CEO of CSOP Asset Management, said in a statement.
Bitcoin has been the most unpredictable of all major global assets over the past decade, with volatility as high as 38.3 percent through 2023, surpassing crude oil and the Nasdaq 100, the firm said.
Bitcoin has rebounded sharply in recent weeks amid heightened expectations that Republican presidential candidate Donald Trump would retake the White House. It rose slightly to trade at around $67,400 (roughly Rs. 56.3 lakh) on Monday following US President Joe Biden’s decision to leave the presidential race.
CSOP’s inverse Bitcoin product aims to generate returns that closely match the one-time daily inverse performance of the S&P Bitcoin Futures Index, the company said.
CSOP launched Asia’s first Bitcoin futures ETF in Hong Kong in 2022. The ETF’s market cap grew to over $100 million (roughly Rs. 836 crore) on the back of the global crypto price rally earlier this year, but had fallen to around $58 million (roughly Rs. 485.2 crore) through Friday.
© Thomson Reuters 2024
