On July 23, Hong Kong is set to make history by launching Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Futures Daily Inverse Product (7376.HK). This innovative exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) aims to give investors a unique opportunity to benefit from declines in the price of Bitcoin.
The CSOP Bitcoin Futures Daily Inverse Product will be listed on the Hong Kong Stock Exchange (HKEX) with an initial price of around 7.8 Hong Kong dollars (HKD) per unit. The ETF is specifically designed to closely mirror the inverse daily performance of the S&P Bitcoin Futures Index. This is achieved through a futures-based replication strategy, involving direct investments in spot-month Bitcoin futures traded on the Chicago Mercantile Exchange (CME).
Ms. Ding Chen, the CEO of CSOP Asset Management, highlighted the significance of this new product, stating, “As an ETF issuer esteemed by investors in the APAC region, CSOP has always aimed to offer comprehensive and diversified investment products. We are currently the leading provider of Leveraged and Inverse products in Hong Kong, with a market share of 99%.” This launch further solidifies CSOP’s position in the market and provides investors with more opportunities to diversify their portfolios.
The introduction of the CSOP Bitcoin Futures Daily Inverse Product comes at a time of increased volatility in the cryptocurrency market. Bitcoin’s value experienced a dip below $54,000 in early July but quickly rebounded due to positive sentiments surrounding the future of digital assets. This product launch reflects the growing interest in crypto-related investments and demonstrates CSOP’s commitment to meeting the evolving needs of investors in the region.
The launch of this new ETF follows the successful introduction of the CSOP Bitcoin Futures ETF in December 2022, which was one of the first crypto-linked ETFs in the region. Since then, HKEX has seen a surge in spot crypto ETF trading, with products like the Bitcoin Futures ETF and Ether Futures ETF gaining popularity among investors. Additionally, other asset management firms have entered the market, further expanding the range of crypto-related investment options available to investors.
According to data from Bloomberg, inverse crypto exchange-traded products have garnered approximately $106 million in assets worldwide. The largest of these products, the Short Bitcoin Strategy ETF from ProShares Advisors LLC, has attracted $62.5 million in assets and charges a 1.33% management fee. In Hong Kong alone, the total assets held by Bitcoin and Ether ETFs now amount to $362 million, signaling a growing interest in digital asset investments in the region. Meanwhile, spot Bitcoin ETFs launched in the U.S. have accumulated a staggering $60.7 billion in assets since January, highlighting the global appeal of crypto-related investment products.
The launch of the CSOP Bitcoin Futures Daily Inverse Product represents a significant milestone in the development of the cryptocurrency market in Hong Kong. With increasing interest from investors and the introduction of innovative investment products, the region is poised to become a key player in the global crypto economy. As the industry continues to evolve, it is essential for investors to stay informed and explore new opportunities for growth and diversification in their portfolios.
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