Asia’s Initial Inverse Bitcoin Exchange-Traded Fund to Commence Trading in Hong Kong Tomorrow
Hong Kong’s CSOP Asset Management is poised to introduce Asia’s inaugural inverse bitcoin exchange-traded fund on Tuesday, offering investors an opportunity to capitalize on potential declines in the cryptocurrency market.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product will
make its debut on the Hong Kong Stock Exchange on Tuesday morning, providing
investors with a novel investment vehicle to speculate on bitcoin price
movements.
The exchange-traded fund (ETF) is anticipated to capitalize
on the growing demand for cryptocurrencies by exploiting the erratic trading
patterns of these digital assets. Following the initial public offering of the
first batch of spot crypto ETFs in Hong Kong during April, Bitcoin experienced
a tumultuous second quarter, resulting in a loss of over 12%.
“The first futures-based inverse bitcoin product listed in
Hong Kong creates opportunities for investors to gain from downside movements
in bitcoin,” said Ding Chen, CEO of CSOP Asset Management in a statement.
In the last decade, Bitcoin has demonstrated the highest
level of volatility among prominent global assets. In 2023, its volatility
reached 38.3%, exceeding that of crude oil and the Nasdaq 100.
Recently, Bitcoin experienced a significant upswing due to
growing optimism that the Republican presidential candidate, Donald Trump,
would reclaim the White House. Following U.S. President Joe Biden’s decision to
withdraw from the presidential race, Bitcoin exhibited a slight increase and
was trading at approximately $67,400 on Monday.
CSOP’s inverse Bitcoin product seeks to deliver returns that
closely align with the single-day inverse performance of the S&P Bitcoin
Futures Index.
In 2022, CSOP introduced Asia’s inaugural bitcoin futures
ETF in Hong Kong. The ETF’s market valuation surpassed $100 million during the
global cryptocurrency price surge earlier this year, but as of Friday, it had
declined to approximately $58 million.