Worried about Bitcoin’s price dropping? Asia’s first inverse product is about to change the game.
On July 23, Hong Kong will debut Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK). According to a CSOP company post on July 22, the product is set to be listed on the Hong Kong Stock Exchange (HKEX) with an initial listing price of approximately 7.8 Hong Kong dollars (HKD) per unit.
This new exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) is designed to provide investors with a way to profit from drops in Bitcoin’s price.
This development follows the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, marking another step in the firm’s expansion within the Asia-Pacific region.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product is designed to deliver investment results that closely mirror the inverse daily performance of the S&P Bitcoin Futures Index. It will employ a futures-based replication strategy, directly investing in spot-month Chicago Mercantile Exchange (CME) Bitcoin Futures.
HKEX has been trading spot crypto ETFs since late 2022, following CSOP’s introduction of its Bitcoin Futures ETF and Ether Futures ETF.
Both products track BTC futures and Ether futures cash-settled contracts traded on the CME, and were succeeded by Samsung Asset Management Hong Kong’s Bitcoin Futures ETF in January 2023.
Between these three futures products, HKEX crypto ETFs had accumulated assets under management worth 1.3 billion HKD, or approximately $170 million, as of April 29.
While ETFs are gaining traction in Hong Kong, the crypto exchange landscape is facing challenges. Cryptocurrency exchange HKX has become the latest platform to withdraw its license application from the Hong Kong Securities and Futures Commission (SFC).
On July 18, the HKX management team announced their decision to close the Hong Kong-based exchange, advising users to withdraw their crypto assets. The notice published on their official website stated:
