Hong Kong to Launch ‘Inverse Bitcoin ETF’ for First Time in Asia

Asia’s first inverse Bitcoin exchange-traded fund that permits buyers to wager on a fall within the cryptocurrency, is about to debut in Hong Kong on Tuesday.

Hong Kong’s CSOP Asset Management mentioned it would launch the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the town’s inventory alternate on Tuesday morning.

The ETF is predicted to benefit from rising demand to revenue from the risky buying and selling of cryptocurrencies. After the primary batch of spot crypto ETFs went public in Hong Kong in April, Bitcoin had a bumpy second quarter, shedding greater than 12 %.

“The first futures-based inverse Bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin,” mentioned Ding Chen, CEO of CSOP Asset Management in an announcement.

Bitcoin has been essentially the most erratic amongst main world belongings within the final ten years, with volatility as excessive as 38.3 % in 2023, surpassing crude oil and the Nasdaq 100, the corporate added.

Bitcoin rebounded strongly up to now few weeks on elevated expectations that Republican presidential nominee Donald Trump would regain the White House. It was up barely and traded at round $67,400 (roughly Rs. 56.3 lakh) on Monday following U.S. President Joe Biden’s resolution to give up the presidential race.

CSOP’s inverse Bitcoin product goals to offer a return that carefully matches the one-time inverse every day efficiency of the S&P Bitcoin Futures Index, the agency mentioned.

CSOP launched Asia’s first Bitcoin futures ETF in Hong Kong in 2022. The market worth of the ETF grew to greater than $100 million (roughly Rs. 836 crore) because of the world crypto worth rally earlier this yr, however had dropped to about $58 million (roughly Rs. 485.2 crore) as of Friday.

© Thomson Reuters 2024