The Hong-Kong The stock exchange (HKEX) is set to make history tomorrow with the launch of Asia’s first inverse Bitcoin exchange-traded fund (ETF).
JUST IN: ðŸ‡ðŸ‡° Asia’s First Inverse #Bitcoin ETF goes live in Hong Kong tomorrow. photo.twitter.com/HSV28BZd2l
— Bitcoin Magazine (@BitcoinMagazine) July 22, 2024
The CSOP Bitcoin Futures Daily (-1x) Inverse Product will begin trading on July 23. The ETF invests in short positions on 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 risks or speculate on downward price movements by shorting Bitcoin futures. This new tool offers an alternative to shorting or directly buying put options on Bitcoin.
The inverse ETF is managed by CSOP Asset Management, with HSBC as trustee. It charges an annual fee of 1.99% and aims to raise $50-100 million in assets under management in 1-2 years.
The launch has generated buzz as a new way to trade Bitcoin volatility. While controversial to some, the opposite is true Bitcoin ETFs are gaining popularity worldwide. The ProShares Short Bitcoin ETF (BITI) in the US has over $70 million under management.
The CSOP product will be the first of its kind in Asia, bringing inverse Bitcoin exposure to Hong Kong’s $5.4 trillion exchange. It represents another milestone for mainstream Bitcoin adoption in the region.