The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK), Asia’s first Bitcoin futures inverse product, will debut in Hong Kong on July 23.
This new exchange-traded fund (ETF) was unveiled by CSOP Asset Management, one of the biggest asset managers in China, to provide investors with a means to profit from drops in the price of Bitcoin.
The product will be listed at a listing price of around 7.8 Hong Kong dollars per unit on the Hong Kong Stock Exchange (HKEX). It uses a futures-based replication method to produce investment outcomes that closely resemble the inverse daily performance of the S&P Bitcoin Futures Index by investing directly into spot-month Chicago Mercantile Exchange Bitcoin Futures.
This move represents a further phase in the growth of CSOP Asset Management in the Asia-Pacific area, after the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022.
Financial products such as these, in the opinion of Zeta Markets founder Tristan Frizza, can moderate speculative activity and promote long-term market stability, both of which are essential for the development of the cryptocurrency industry and the acceptance of cryptocurrencies as legitimate investment vehicles.
Since CSOP launched its Bitcoin Futures ETF and Ether Futures ETF in late 2022, Hong Kong’s HKEX has started trading spot cryptocurrency ETFs. These products follow cash-settled contracts for Bitcoin futures and Ether futures that are traded on the CME.
In January 2023, Samsung Asset Management Hong Kong’s Bitcoin futures ETF came next. By April 29, the combined assets under management of these three futures products had reached 1.3 billion Hong Kong dollars ($170 million), demonstrating the increasing demand for and investment in cryptocurrency exchange-traded funds (ETFs) in the area.
On July 5, the Hong Kong Securities and Futures Commission (SFC) flagged seven unlicensed cryptocurrency exchanges for operating unlawfully. These exchanges were added to the SFC’s “Suspicious virtual asset trading platforms” list for providing services without proper licenses. This measure is part of the SFC’s effort to manage records of crypto trading firms and reduce fraud risks.
Also Read: Hong Kong to Update Crypto Regulations and Licensing