Hong Kong Set to Launch Asia’s First Inverse Bitcoin ETF
YEREVAN (CoinChapter.com) — On July 23, Hong Kong will launch Asia’s first inverse Bitcoin ETF. The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK) by CSOP Asset Management aims to allow investors to profit from Bitcoin price drops.
Hong Kong Launches Inverse Bitcoin ETF at HKEX
The CSOP Bitcoin Future Daily (-1x) Inverse Product mirrors the inverse daily performance of the S&P Bitcoin Futures Index. It uses a futures-based replication strategy, investing directly in spot-month Chicago Mercantile Exchange Bitcoin Futures.
The product will be listed on the Hong Kong Stock Exchange (HKEX) and will have a starting price of about 7.8 Hong Kong dollars per unit.
This new ETF follows the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in Dec. 2022. That initial product marked CSOP’s entry into the cryptocurrency space in the Asia-Pacific region. The success of the Bitcoin Futures ETF led to this new inverse product.
Hong Kong Expands Crypto ETF Market Amid Regulatory Scrutiny
Hong Kong’s interest in crypto ETFs has been growing. Since late 2022, HKEX has been trading spot crypto ETFs, starting with CSOP’s Bitcoin Futures ETF and Ether Futures ETF. These products track Bitcoin and Ether futures contracts traded on the CME.
In January 2023, Samsung Asset Management Hong Kong introduced its Bitcoin futures ETF, further expanding the market. By April 29, these crypto ETFs had accumulated 1.3 billion HKD ($170 million) in assets under management.
The launch of the CSOP Bitcoin Future Daily (-1x) Inverse Product comes amid increased regulatory scrutiny. On July 5, the Hong Kong Securities and Futures Commission (SFC) flagged seven crypto exchanges for operating illegally.
These exchanges provided services without necessary operational licenses. The SFC placed these exchanges on its “Suspicious virtual asset trading platforms” alert list, which aims to reduce the risks of fraud and scams.
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