The CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK), Asia’s pioneering Bitcoin futures inverse product, will debut on the Hong Kong Stock Exchange (HKEX) on July 23. This innovative exchange-traded fund (ETF) will be listed at approximately 7.8 Hong Kong dollars per unit.
A New Investment Opportunity
Unveiled by CSOP Asset Management, one of China’s largest asset managers, this ETF offers investors a way to profit from declines in Bitcoin prices. It uses a futures-based replication method to mirror the inverse daily performance of the S&P Bitcoin Futures Index by directly investing in spot-month Chicago Mercantile Exchange (CME) Bitcoin Futures.
This launch continues CSOP Asset Management’s expansion in the Asia-Pacific region, following the successful introduction of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022.
Market Impact and Future Stability
According to Tristan Frizza, founder of Zeta Markets, financial products like this ETF can moderate speculative activity and promote long-term market stability. Such stability is essential for the cryptocurrency industry’s development and the acceptance of cryptocurrencies as legitimate investment vehicles.
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Since the launch of CSOP’s Bitcoin Futures ETF and Ether Futures ETF in late 2022, the HKEX has started trading spot cryptocurrency ETFs. These products follow cash-settled contracts for Bitcoin futures and Ether futures traded on the CME. In January 2023, Samsung Asset Management Hong Kong introduced its Bitcoin futures ETF. By April 29, the combined assets under management of these three futures products reached 1.3 billion Hong Kong dollars ($170 million), underscoring the growing demand for cryptocurrency ETFs in the region.
Regulatory Measures
On July 5, the Hong Kong Securities and Futures Commission (SFC) flagged seven unlicensed cryptocurrency exchanges for operating unlawfully. These exchanges were added to the SFC’s “Suspicious Virtual Asset Trading Platforms” list for offering services without proper licenses. This action is part of the SFC’s ongoing efforts to regulate crypto trading firms and mitigate fraud risks.
The debut of the CSOP Bitcoin Future Daily (-1x) Inverse Product on the HKEX marks a significant milestone in the evolution of cryptocurrency investment options in Asia. With increasing demand for such products and tighter regulatory measures, the cryptocurrency market in Hong Kong is poised for more structured growth.
