Hong Kong Makes History with Asia's First Inverse Bitcoin ETF
Asia's First Bitcoin Shorting Tool Arrives: CSOP Launches Inverse Bitcoin Futures ETF
Hong Kong Makes History: Get ready for liftoff on July 23rd as Asia welcomes its first-ever Bitcoin futures inverse product – the CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK).
Profiting from Downturns: This innovative exchange-traded fund (ETF) by CSOP Asset Management, a major Chinese player, empowers investors to capitalize on Bitcoin price dips (BTC currently at $67,566). It builds upon the success of their 2022 CSOP Bitcoin Futures ETF (3066.HK), solidifying their presence in the Asian market.
How it Works: The CSOP Bitcoin Future Daily (-1x) Inverse Product tracks the inverse of the S&P Bitcoin Futures Index, meaning it delivers returns opposite to the index's daily performance. This is achieved through a futures-based strategy directly investing in spot-month Chicago Mercantile Exchange Bitcoin Futures contracts.
Listing Details: CSOP announced a listing price of around 7.8 Hong Kong dollars per unit on the Hong Kong Stock Exchange (HKEX) on July 22nd.
HKEX Embraces Crypto ETFs: Since CSOP's introduction of Bitcoin and Ether Futures ETFs in late 2022, HKEX has become a hub for spot crypto ETFs. Both products track cash-settled CME Bitcoin and Ether futures contracts. Samsung Asset Management Hong Kong joined the party in January 2023 with their own Bitcoin futures ETF. As of April 29th, these three futures-based ETFs boasted a combined HK$1.3 billion (US$170 million) in assets under management.
Regulatory Measures: While HKEX embraces crypto innovation, the Hong Kong Securities and Futures Commission (SFC) remains vigilant. On July 5th, the SFC issued warnings against seven crypto exchanges operating illegally in the region. These unlicensed platforms were flagged and added to the SFC's "Suspicious virtual asset trading platforms" alert list. This initiative aims to mitigate fraud and scams by maintaining clear public records of registered, unregistered, and illegal crypto trading entities.