Hong Kong to introduce Asia’s first Bitcoin futures inverse product

On July 23, Hong Kong will launch Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Futures Daily (-1x) (7376.HK) inverse product.

This new exchange-traded fund (ETF) from China Southern Asset Management Co., Ltd (CSOP) is designed to give investors the opportunity to profit from the fall in the price of Bitcoin.

Asia’s first Bitcoin Futures inverse ETF

The inverse product CSOP Bitcoin Futures Daily (-1x) will be listed on the Hong Kong Stock Exchange (HKEX) at an initial price of approximately HKD 7.8 per unit and is designed to provide results of investment that closely mirror the reverse. daily performance of the S&P Bitcoin Futures index.

This is achieved through a futures-based replication strategy, which involves direct investments in spot Bitcoin futures that are traded on the Chicago Mercantile Exchange (CME).

Ms. Ding Chen, CEO of CSOP Asset Management, said in a statement: “As an ETF issuer loved by investors in the APAC region, CSOP has always aimed to provide comprehensive and diversified investment products. We are currently the provider leader in leveraged and inverse products in Hong Kong, with a market share of 99%.

He added that the introduction of the first futures-based inverse Bitcoin product in Hong Kong gives investors opportunities to profit from the fall in the value of Bitcoin.

This launch follows a volatile period for Bitcoin investors, as the cryptocurrency’s value dipped below $54,000 in early July before recovering optimism around pro-crypto sentiment, including those linked to the political future potential of former President Donald Trump.

Expansion of CSOP in Asia-Pacific

The introduction of the inverse product CSOP Bitcoin Futures Daily (-1x) marks another step in the expansion of CSOP in the Asia-Pacific region. It builds on the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, which was one of the first cryptocurrency-linked ETFs in the region.

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 futures and Ether futures contracts traded on the CME.

In January 2023, Samsung Asset Management Hong Kong also introduced a Bitcoin futures ETF. As of April 29, these ETFs have collectively accumulated HKD 1.3 billion worth approximately $170 million in assets under management.

According to data compiled by Bloomberg, products traded in reverse crypto have attracted roughly $106 million worldwide to date. The largest of these is ProShares Advisors LLC’s Short Bitcoin Strategy ETF, which has raised $62.5 million in assets and charges a management fee of 1.33%.

In Hong Kong, the total assets of the six Bitcoin and Ether ETFs now stand at $362 million. Meanwhile, spot Bitcoin ETFs launched in the US in January have collectively amassed $60.7 billion in assets.

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