The Hong Kong Stock Exchange (HKEX) is poised to make history tomorrow with the launch of Asia’s first inverse Bitcoin exchange-traded fund (ETF).
JUST IN: ?? Asia’s first inverse #Bitcoin ETF to go live tomorrow in Hong Kong. pic.twitter.com/HSV28BZd2l
— Bitcoin Magazine (@BitcoinMagazine) July 22, 2024
The CSOP Bitcoin Futures Daily (-1x) Inverse Product will begin trading on July 23rd. The ETF will invest 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 risk or speculate on downward price moves by going short on Bitcoin futures. This new tool provides an alternative to shorting or buying put options on Bitcoin directly.
The inverse ETF is managed by CSOP Asset Management, with HSBC as the trustee. It charges a 1.99% annual fee and aims to attract $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, inverse Bitcoin ETFs are gaining traction globally. The ProShares Short Bitcoin ETF (BITI) in the U.S. 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 stock market. It represents another milestone for mainstream Bitcoin adoption in the region.