The Launch of Asia’s First Bitcoin Futures Inverse Product in Hong Kong

Hong Kong is set to make history on July 23 with the launch of Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK). This innovative exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) is specifically designed to allow investors to capitalize on declines in the price of Bitcoin. The initial price per unit of the CSOP Bitcoin Futures Daily (-1x) Inverse Product is approximately 7.8 Hong Kong dollars (HKD). It aims to mirror the inverse daily performance of the S&P Bitcoin Futures Index through a futures-based replication strategy involving investments in spot-month Bitcoin futures traded on the Chicago Mercantile Exchange (CME).

Ms. Ding Chen, CEO of CSOP Asset Management, expressed excitement about the launch of this new product, highlighting that CSOP is a leading provider of Leveraged and Inverse products in Hong Kong with a market share of 99%. She emphasized the importance of offering diversified investment products to investors in the Asia-Pacific region. The introduction of Asia’s first futures-based inverse Bitcoin product provides a unique opportunity for investors to profit from declines in Bitcoin’s value amidst a volatile market environment.

The launch of the CSOP Bitcoin Futures Daily (-1x) Inverse Product represents a significant milestone in CSOP’s expansion within the Asia-Pacific region. This new product follows the successful introduction of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, which was one of the first crypto-linked ETFs in the region. The addition of this inverse Bitcoin product further solidifies CSOP’s position as a key player in the cryptocurrency investment space in Hong Kong and beyond.

Since late 2022, the Hong Kong Stock Exchange (HKEX) has seen a surge in the trading of spot crypto ETFs, starting with CSOP’s Bitcoin Futures ETF and Ether Futures ETF. Samsung Asset Management Hong Kong also entered the market by introducing a Bitcoin futures ETF in January 2023. Collectively, these ETFs have amassed a total of 1.3 billion HKD (approximately $170 million) in assets under management. Inverse crypto exchange-traded products have attracted around $106 million globally, with the Short Bitcoin Strategy ETF from ProShares Advisors LLC leading the way by collecting $62.5 million in assets and charging a 1.33% management fee. In Hong Kong, the combined assets held by the six Bitcoin and Ether ETFs now amount to $362 million, showcasing the growing interest in cryptocurrency investments in the region. On the other hand, the spot Bitcoin ETFs launched in the U.S. in January have seen impressive growth, accumulating a total of $60.7 billion in assets as of April 29.

The launch of Asia’s first Bitcoin futures inverse product in Hong Kong signifies a significant step towards a more diverse and robust cryptocurrency investment landscape in the region. As investors continue to seek alternative avenues to capitalize on the volatile nature of digital assets like Bitcoin, innovative products like the CSOP Bitcoin Futures Daily (-1x) Inverse Product provide unique opportunities for profit and risk management in this dynamic market environment. With the expanding presence of cryptocurrency ETFs in Hong Kong and globally, the future of digital asset investments looks promising as traditional financial institutions and investors increasingly embrace this emerging asset class.