Hong Kong to Launch Asia’s First Inverse Bitcoin ETF

In Hong Kong on Tuesday, Asia’s first inverse bitcoin exchange-traded fund will allow investors to bet on a cryptocurrency drop

On Tuesday morning, the CSOP Bitcoin Futures Daily (-1x) Inverse Product will be introduced on the stock exchange in Hong Kong by CSOP Asset Management.

It is anticipated that the ETF will capitalize on the volatile trading of cryptocurrencies by capitalizing on the increasing demand. Bitcoin experienced a turbulent second quarter, with a loss of over 12%, following the Hong Kong public offering of the initial tranche of spot crypto ETFs in April.

In a statement, Ding Chen, CEO of CSOP Asset Management, stated that the first futures-based inverse bitcoin product listed in Hong Kong presents investors with the opportunity to profit from bitcoin’s downturns.

In the past decade, Bitcoin has been the most volatile of all significant global assets, reaching as high as 38.3% in 2023, surpassing the Nasdaq 100 and crude oil, the company said.

In the past few weeks, Bitcoin has experienced a significant rebound due to the growing likelihood that Republican presidential nominee Donald Trump will reclaim the White House.

On Monday, it was slightly higher and traded at approximately $67,400 in response to U.S. President Joe Biden’s decision to withdraw from the presidential campaign.

The firm stated that the inverse bitcoin product of CSOP is designed to offer a return that closely resembles the one-time inverse daily performance of the S&P Bitcoin Futures Index.

In 2022, CSOP introduced the first bitcoin futures ETF in Asia. Earlier this year, the global crypto price rally resulted in the ETF’s market value increasing to over $100 million. However, as of Friday, it had declined to approximately $58 million.