Asia’s financial market is taking a significant step forward with the launch of the CSOP Bitcoin Futures Daily (-1x) Inverse Product in Hong Kong. This new exchange-traded fund by China Southern Asset Management Co., Ltd (CSOP) is designed to provide investors with a unique opportunity to profit from declines in Bitcoin’s price. The CSOP Bitcoin Futures Daily (-1x) Inverse Product will be listed on the Hong Kong Stock Exchange (HKEX) at an initial price of approximately 7.8 Hong Kong dollars (HKD) per unit.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product aims to mirror the inverse daily performance of the S&P Bitcoin Futures Index through a futures-based replication strategy. This strategy involves direct investments in spot-month Bitcoin futures traded on the Chicago Mercantile Exchange (CME). This innovative approach allows investors to capitalize on the volatility of Bitcoin’s price movements, especially during periods of decline.
Ms. Ding Chen, CEO of CSOP Asset Management, expressed enthusiasm for the launch of the first futures-based inverse Bitcoin product in Hong Kong. She highlighted CSOP’s commitment to providing comprehensive and diversified investment products to investors in the Asia-Pacific region. The introduction of the CSOP Bitcoin Futures Daily (-1x) Inverse Product marks a significant milestone in CSOP’s expansion within the region, following the successful launch of the CSOP Bitcoin Futures ETF in December 2022.
The Asia-Pacific region has witnessed a growing trend in the trading of spot crypto ETFs, with the introduction of products tracking Bitcoin and Ether futures contracts on the CME. In addition to the CSOP Bitcoin Futures ETF, Samsung Asset Management Hong Kong also launched a Bitcoin futures ETF in January 2023. These ETFs have collectively amassed 1.3 billion HKD in assets under management, indicating a strong investor interest in crypto-linked investment products.
According to data compiled by Bloomberg, inverse crypto exchange-traded products have attracted approximately $106 million in assets globally. The largest of these products is the Short Bitcoin Strategy ETF from ProShares Advisors LLC, which has collected $62.5 million in assets. In Hong Kong, the total assets held by the six Bitcoin and Ether ETFs now stand at $362 million, reflecting the growing popularity of crypto-related investments in the region.
The launch of Asia’s first Bitcoin futures inverse product in Hong Kong represents a significant development in the region’s financial landscape. Investors now have access to innovative investment opportunities that allow them to capitalize on the volatility of Bitcoin’s price movements. With growing interest in crypto-linked exchange-traded products, the future looks promising for the development of the cryptocurrency market in Asia-Pacific.
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