Hong Kong Unveils Asia’s Inverse Bitcoin ETF

Following the successful 2022 launch of the firm’s Bitcoin Futures ETF, CSOP’s new inverse Bitcoin ETF is designed to capitalize on BTC price declines.

The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376. HK), Asia’s first Bitcoin futures inverse product, will be launched in Hong Kong on July 23.

The new exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) is designed to provide investors with a means of profiting from Bitcoin price fluctuations.

This development continues the firm’s expansion in the Asia-Pacific region, initiated with successfully introducing the CSOP Bitcoin Futures ETF (3066.HK) in December 2022.

Product details

The CSOP Bitcoin Futures Daily (-1x) Inverse Product is intended to provide investment results that closely mirror the inverse daily performance of the S&P Bitcoin Futures Index.

This inverse product accomplishes this by employing a futures-based replication strategy that invests directly in spot-month Chicago Mercantile Exchange (CME) Bitcoin Futures.

The product is scheduled to be listed on the Hong Kong Stock Exchange (HKEX) with a listing price of approximately 7.8 Hong Kong dollars (HKD) per unit, as indicated in a CSOP company post on July 22.

Hong Kong crypto ETFs

Since the introduction of the Bitcoin Futures ETF and Ether Futures ETF by CSOP in late 2022, HKEX has been trading spot crypto ETFs.

In January 2023, Samsung Asset Management Hong Kong’s Bitcoin future ETF followed the two products, which monitor BTC futures and Ether futures cash-settled contracts traded on the CME.

As of April 29, the three futures products of HKEX crypto ETFs had accumulated 1.3 billion HKD in assets under management, worth $170 million.

Hong Kong SFC flags seven unregulated crypto exchanges

The Securities and Futures Commission of Hong Kong issued alerts against seven crypto exchanges on July 5 for illegal operations in the region.

The HK SFC flagged the exchanges for providing services without operational licenses and were subsequently added to the “Suspicious virtual asset trading platforms” section of its alert list.

The HK SFC endeavors to mitigate the risks of fraud and scams by maintaining public records of registered, unregistered, and unlawful crypto trading entities.