The Hong Kong Stock Exchange (HKEX) is set to make history tomorrow with the launch of Asia’s first inverse bitcoin exchange-traded fund (ETF).
<blockquote class="twitter-tweet”>
BREAKING NEWS: Asia's first reverse version twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin The ETF will begin trading tomorrow in Hong Kong. image.twitter.com/HSV28BZd2l
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1815309495100207415?ref_src=twsrc%5Etfw”>July 22, 2024
The CSOP (-1x) bitcoin futures daily inverse product will begin trading on July 23. The ETF will invest in short positions in bitcoin futures contracts traded on the Chicago Mercantile Exchange. This gives traders exposure to the daily inverse performance of the underlying bitcoin futures index.
Traders can hedge risks or speculate on downward price movements by selling bitcoin futures. This new tool offers an alternative to selling futures or directly buying put options on bitcoin.
The inverse ETF is managed by CSOP Asset Management, with HSBC as trustee. It charges an annual fee of 1.99% and aims to attract $50-100 million in assets under management over 1-2 years.
The launch has generated buzz as a new way to trade bitcoin volatility. While controversial to some, inverse bitcoin ETFs are gaining traction globally. The ProShares Short bitcoin ETF (BITI) in the US has over $70 million under management.
The CSOP product will be the first of its kind in Asia and will provide inverse bitcoin exposure to Hong Kong’s $5.4 trillion stock market. It represents another milestone for mainstream bitcoin adoption in the region.
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