FameEX Hot Topics | Hong Kong Unveils Its First Inverse Bitcoin ETF Product

CSOP Asset Management, a regulated asset management company, has made history by launching the first inverse Bitcoin ETF in Hong Kong's markets. This innovative product allows traders and investors to speculate on the decline of Bitcoin's value, complementing the existing range of ETF products and further solidifying Hong Kong's status as an international crypto market hub.

Hong Kong is positioning itself as a leading cryptocurrency hub, with a surge in new cryptocurrency products. CSOP Asset Management recently introduced the first inverse Bitcoin exchange-traded fund (ETF) in the market. This inverse ETF enables investors to profit from the negative performance of Bitcoin. CSOP’s product, the CSOP Bitcoin Futures Daily (-1x), started trading this Tuesday on Hong Kong markets.

Despite a generally bullish outlook for Bitcoin due to recent geopolitical events, including the failed assassination attempt on former U.S. President Donald Trump and U.S. President Joe Biden's decision not to seek reelection, Bitcoin prices are still expected to experience periodic declines. CSOP Asset Management CEO Ding Chen anticipates that these products will attract inflows of $50 to $100 million over the next two years. However, Chen warns that investors must manage the risks associated with an inverse Bitcoin ETF or take a countering position, noting the complexity of such instruments in Hong Kong. Chen also disclosed that CSOP is working on launching an inverse ETH ETF.

Since April, several ETFs have been launched in Hong Kong, attracting inflows of $362 million—a modest amount compared to the $60 billion raised by U.S.-based counterparts. Nonetheless, Hong Kong's ETFs offer a unique advantage by allowing investors to swap crypto assets for ETF participation directly, which differs from the operation of U.S. ETFs. The introduction of the inverse Bitcoin ETF by CSOP Asset Management enhances Hong Kong’s growing portfolio of cryptocurrency investment options, reinforcing its position as a burgeoning center for digital assets and blockchain technology.

This new product not only highlights Hong Kong's commitment to becoming a key player in the global cryptocurrency market but also provides investors with diverse tools to navigate the volatile crypto landscape.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.