Asia’s first inverse Bitcoin exchange-traded fund (ETF), which allows investors to profit from declines in the cryptocurrency, is set to launch in Hong Kong on Tuesday.
CSOP Asset Management will debut the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the Hong Kong stock exchange.
This ETF aims to capitalize on the increasing demand for trading in the volatile cryptocurrency market. Bitcoin experienced a turbulent second quarter, dropping more than 12% after the introduction of the first spot crypto ETFs in Hong Kong in April.
Ding Chen, CEO of CSOP Asset Management, stated, “The first futures-based inverse Bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin.”
Bitcoin has been one of the most volatile major global assets over the past decade, with 2023 volatility reaching 38.3%, surpassing both crude oil and the Nasdaq 100, according to the company.
Bitcoin recently saw a strong rebound, trading at around $67,400 (approximately Rs. 56.3 lakh) on Monday, following U.S. President Joe Biden’s decision to not seek re-election and rising expectations that Donald Trump could return to the White House.
CSOP’s new inverse Bitcoin product aims to deliver returns that closely match the inverse daily performance of the S&P Bitcoin Futures Index.
In 2022, CSOP launched Asia’s first Bitcoin futures ETF in Hong Kong. This ETF’s market value soared to over $100 million (approximately Rs. 836 crore) earlier this year due to a global crypto price rally but had decreased to about $58 million (approximately Rs. 485.2 crore) by Friday.
