In recent developments, Hong Kong is set to launch Asia’s very first Bitcoin futures inverse product on July 23. The CSOP Bitcoin Futures Daily (-1x) Inverse Product, created by China Southern Asset Management Co., Ltd (CSOP), aims to provide investors with an opportunity to profit from declines in Bitcoin’s price. This exchange-traded fund (ETF) will be listed on the Hong Kong Stock Exchange (HKEX) at an initial price of approximately 7.8 Hong Kong dollars (HKD) per unit.
CSOP’s Expansion
CSOP Asset Management is a leading provider of Leveraged and Inverse products in Hong Kong, boasting a market share of 99%. The introduction of the CSOP Bitcoin Futures Daily (-1x) Inverse Product is seen as a significant step in the company’s expansion within the Asia-Pacific region. This product follows the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) back in December 2022, among the first crypto-linked ETFs in the region.
Market Trends
Since late 2022, HKEX has been actively trading spot crypto ETFs, starting with CSOP’s Bitcoin Futures ETF and Ether Futures ETF. These products track Bitcoin futures and Ether futures cash-settled contracts traded on the Chicago Mercantile Exchange (CME). Additionally, in January 2023, Samsung Asset Management Hong Kong also introduced a Bitcoin futures ETF. Collectively, these ETFs have accumulated assets under management worth approximately $170 million.
According to data from Bloomberg, inverse crypto exchange-traded products have attracted around $106 million globally to date. The largest of these products is the Short Bitcoin Strategy ETF from ProShares Advisors LLC, which has amassed $62.5 million in assets and charges a 1.33% management fee. In Hong Kong alone, the total assets held by the six Bitcoin and Ether ETFs now amount to $362 million. On the other hand, spot Bitcoin ETFs launched in the U.S. in January have collectively gathered assets amounting to $60.7 billion.
The introduction of Asia’s first Bitcoin futures inverse product is a major development in the cryptocurrency market. It provides investors with new opportunities to profit from declines in Bitcoin’s value, adding a layer of diversity to their investment portfolios. This innovative product reflects the growing interest and demand for cryptocurrency-linked investment options in the Asia-Pacific region.
The launch of the CSOP Bitcoin Futures Daily (-1x) Inverse Product marks a significant milestone in the evolution of the cryptocurrency market in Hong Kong and the wider Asia-Pacific region. As the demand for cryptocurrency investment products continues to grow, we can expect to see further innovation and expansion in this space. Investors should stay informed about these developments to capitalize on the evolving landscape of digital assets.