Hong Kong is set to launch Asia's inaugural inverse bitcoin exchange-traded fund (ETF) on Tuesday, enabling investors to speculate on a decline in the cryptocurrency's value. CSOP Asset Management announced the introduction of the CSOP Bitcoin Futures Daily (-1x) Inverse Product on the Hong Kong stock exchange. This ETF is anticipated to capitalize on the growing interest in profiting from the erratic fluctuations of cryptocurrencies.
Following the debut of the first spot crypto ETFs in Hong Kong in April, bitcoin experienced a tumultuous second quarter, with a decline exceeding 12%. Ding Chen, CEO of CSOP Asset Management, highlighted in a statement that the first futures-based inverse bitcoin product in Hong Kong offers investors the chance to benefit from downward trends in bitcoin prices. Bitcoin has shown the highest volatility among major global assets over the past decade, with a volatility rate reaching 38.3% in 2023, outpacing crude oil and the Nasdaq 100.
Bitcoin's value has surged in recent weeks due to heightened expectations of a return to the White House by Republican presidential nominee Donald Trump. On Monday, it traded slightly higher at around $67,400 following U.S. President Joe Biden's withdrawal from the presidential race. CSOP's inverse bitcoin product is designed to closely track the one-time inverse daily performance of the S&P Bitcoin Futures Index.
CSOP introduced Asia’s first bitcoin futures ETF in Hong Kong in 2022. The ETF's market value surged to over $100 million earlier this year due to a global crypto price rally, but it had fallen to approximately $58 million by Friday.
