Hong Kong set to launch Asia’s first inverse bitcoin ETF
Bitcoin has experienced significant volatility, losing over 12% in the second quarter and recently rebounding due to US political events.
Asia’s first inverse bitcoin exchange-traded fund (ETF), designed to allow investors to profit from a decline in cryptocurrency values, will launch in Hong Kong on Tuesday. The CSOP Bitcoin Futures Daily (-1x) Inverse Product, introduced by CSOP Asset Management, will debut on the Hong Kong Stock Exchange.
The new ETF aims to capitalise on the increasing demand for investment opportunities linked to volatile cryptocurrencies. After a batch of spot crypto ETFs launched in Hong Kong in April, bitcoin experienced a turbulent second quarter, falling over 12%. The inverse ETF allows investors to benefit from bitcoin’s price drops.
Bitcoin has been notably volatile, with its fluctuations in 2023 surpassing those of crude oil and the Nasdaq 100. Recent weeks saw a rebound in bitcoin’s value, trading around $67.400 following political developments in the US.
CSOP’s inverse bitcoin product will track the daily inverse performance of the S&P Bitcoin Futures Index. CSOP, which introduced Asia’s first bitcoin futures ETF in 2022, saw its market value rise to over $100 million earlier this year but has since decreased to approximately $58 million.
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