An opportunity for investors to bet on a fall in the value of cryptocurrencies will present itself in Hong Kong with the launch of the first inverse bitcoin exchange-traded fund in Asia.
The first inverse bitcoin exchange-traded fund in Asia will make its Hong Kong debut, enabling investors to wager on a decline in the cryptocurrency. The CSOP Bitcoin Futures Daily (-1x) Inverse Product will go live on the Hong Kong stock exchange on Tuesday morning, according to CSOP Asset Management. It is anticipated that the ETF will benefit from increased demand by capitalizing on erratic cryptocurrency market trading. Bitcoin experienced a rough second quarter, shedding more than 12%, following the first batch of spot cryptocurrency ETFs becoming public in Hong Kong in April.
The CEO of CSOP Asset Management, Ding Chen, stated in a statement that “the first futures-based inverse bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin.” According to the business, for the past ten years, Bitcoin has exhibited the highest degree of volatility among major global assets, with a high of 38.3% in 2023, beating both crude oil and the Nasdaq 100 (.NDX). Due to growing anticipation that Republican presidential nominee Donald Trump will win back the White House, bitcoin has experienced a significant upswing in value over the last few weeks. After U.S. President Joe Biden announced his intention to withdraw from the presidential campaign on Monday, it saw a minor increase and traded at approximately $67,400.
According to the company, CSOP’s inverse bitcoin product seeks to deliver a return that closely resembles the S&P Bitcoin Futures Index’s one-time inverse daily performance. The first bitcoin futures ETF in Asia, 3066.HK, was introduced by CSOP, and it opens a new tab in Hong Kong in 2022. The global crypto price boom earlier this year caused the ETF’s market value to soar to over $100 million, but as of Friday, it had fallen to roughly $58 million.
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