The Hong Kong Stock Exchange (HKEX) is set to make history tomorrow by launching Asia’s first inverse cryptocurrency exchange-traded fund (ETF).
Our new: 🇭🇰 The first reverse in Asia #Bitcoin The exchange-traded fund (ETF) will launch tomorrow in Hong Kong. pic.twitter.com/HSV28BZd2l
— Bitcoin Magazine (@BitcoinMagazine) July 22, 2024
The CSOP Bitcoin Futures Daily (-1x) Inverse product will begin trading on July 23. The exchange-traded fund will invest in short positions in Bitcoin futures contracts traded on the Chicago Mercantile Exchange. This gives traders exposure to the daily inverse performance of the underlying Bitcoin futures index.
Traders can hedge their risk or speculate on downward price movements by shorting Bitcoin futures. This new tool provides an alternative to shorting or buying put options on Bitcoin directly.
The inverse ETF is managed by CSOP Asset Management, with HSBC as custodian. The fund charges an annual fee of 1.99% and aims to attract $50-100 million in assets under management within one to two years.
The launch has generated buzz as a new way to trade Bitcoin volatility. While controversial to some, Bitcoin inverse ETFs are gaining traction globally. ProShares Short Bitcoin (BITI) Bitcoin ETFs currently have over $70 million under management in the US.
The CSOP will be the first of its kind in Asia, bringing reverse exposure to Bitcoin to Hong Kong’s $5.4 trillion stock market, marking another milestone in Bitcoin adoption in the region.