BTC
by BSC News
July 22, 2024
This move follows the launch of spot crypto ETFs in Hong Kong and highlights the city's growing role as a cryptocurrency trading hub.
Hong Kong set to make history by launching Asia's first Bitcoin futures inverse product on its stock exchange. The new financial instrument, introduced by CSOP Asset Management, is expected to offer investors a way to profit from Bitcoin's downturns.
On Tuesday, CSOP Asset Management will debut the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the Hong Kong Stock Exchange.
"This product creates opportunities for investors to capitalize on Bitcoin's downside movements," said Ding Chen, CEO of CSOP Asset Management.
The introduction of this inverse product follows the recent debut of spot crypto ETFs in Hong Kong and aims to address the growing demand for tools that can profit from Bitcoin's volatility.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product is managed by CSOP Asset Management, with HSBC serving as the trustee. The ETF charges an annual fee of 1.99% and aims to attract between $50 to $100 million in assets under management within one to two years.
Unlike direct Bitcoin investments, this product primarily invests in short positions of Bitcoin futures traded on the Chicago Mercantile Exchange. This strategy enables investors to profit from declines in Bitcoin's market prices without needing to short the cryptocurrency directly or buy put options.
Bitcoin has long been known for its extreme price fluctuations. In 2023, the cryptocurrency exhibited volatility as high as 38.3%, surpassing other major global assets like crude oil and the Nasdaq 100. The inverse ETF is designed to take advantage of these swings, allowing traders to hedge against or speculate on Bitcoin’s price declines.
The new product is expected to attract risk-tolerant investors looking to navigate Bitcoin's volatile market. Inverse ETFs are gaining traction globally, with similar products like the ProShares Short Bitcoin ETF (BITI) in the U.S. already managing over $70 million.
The Securities and Futures Commission has implemented a licensing regime for centralized exchanges, and the Hong Kong Monetary Authority is working on regulating stablecoins. These measures are part of the city's broader strategy to enhance its virtual asset sector and attract international investment.
The Hong Kong government has also taken an important step in cryptocurrency investment with the conditional approval of its first spot Bitcoin and Ether exchange-traded funds (ETFs) on April 15.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
Related News
Latest News
4h : 28m ago
Aptos Welcomes Brevan Howard, BlackRock, and Hamilton Tokenized Funds by Libre
7h : 28m ago
Magic Eden Launches New US Domain, Separates Services for US and International Users
9h : 13m ago
Pavel Durov Criticizes French Authorities Over Telegram Charges, Hints at Market Withdrawals
12h : 28m ago
Changpeng Zhao Permanently Barred from Binance Management But Retains Power: Binance CEO
September 5, 2024
What is SNAXchain by Synthetix?
September 5, 2024
Angel Drainer Resurfaces: New Phishing Toolkit AngelX Deploys 300+ Malicious dApps
September 5, 2024
Injective Launches World’s ‘First Ever’ Tokenized Index for BlackRock's BUIDL Fund
September 5, 2024
ApeCoin Launches BluePrint Initiative to Enhance ApeChain with New Tools and Content
More News