Asia’s First Bitcoin Inverse ETF Set for Hong Kong Launch

Hong Kong is still emerging as a major player in the cryptocurrency market. On July 23, Singapore will launch the China Southern Asset Management Co., Ltd. (CSOP) Bitcoin Future Daily (-1x) Inverse Product, Asia’s first inverse Bitcoin ETF. This new financial instrument is designed to help investors generate profits from the likely fall in the price of Bitcoin.

Hong Kong to Debut Inverse Bitcoin ETF

CSOP created this inverse ETF to offer a new investment avenue. It delivers results that closely mimic the opposite of the daily movement of the S&P Bitcoin Futures Index. However, the ETF uses a futures-based replication approach, targeting the spot-month Bitcoin Futures at the CME.

Further, the ETF will be listed on the Hong Kong Stock Exchange (HKEX) with a unit price of around 7.8 HKD. This emphasizes how Hong Kong is an active player in adopting various cryptocurrency investment instruments. This approach expands investment opportunities and strengthens the city’s position as a diversified financial center.

Hong Kong Crypto ETFs Show Strong Growth

This launch follows the firm’s CSOP Bitcoin Futures ETF launch in December 2022. Both products reflect the company’s focus on expanding its cryptocurrency services in the Asia-Pacific market. The firm had laid a strong foundation with its Bitcoin and Ether Futures ETFs based on the cash-settled contracts traded on the CME.

These developments have greatly enhanced HKEX’s crypto ETF offerings. By the end of April, these ETFs had gathered about $170 million in assets. Such growth indicates that investors in the region are gaining confidence and interest in cryptocurrency-based futures products.

Hong Kong SFC Increases Crypto Market Oversight

The expansion happened when Hong Kong’s Securities and Futures Commission (SFC) stepped up its regulatory oversight. On July 5, the SFC released a statement warning seven crypto exchanges for operating without the required permits. These platforms were included in the “Suspicious virtual asset trading platforms” alert list.

This shows that the SFC is working towards protecting investors from possible frauds and scams. By registering crypto trading entities, the SFC guarantees better market standards through accountability and transparency. This is because Hong Kong remains an active hub for investment in the cryptocurrency industry.

Also Read: Trump Eyes BlackRock’s Larry Fink as New Treasury Secretary