Hong Kong’s CSOP Asset Management will launch Asia’s first crypto-linked inverse ETF, allowing investors to bet against Bitcoin.
Bitcoin’s recent volatility, influenced by US political developments, has seen its price drop below $54,000 and rebound to $67,234.
CSOP aims to collect $50-$100 million in assets for the inverse Bitcoin ETF, with a management fee of 1.99% and traders predicting Bitcoin hitting $100,000.
Hong Kong is set to launch Asia’s first cryptocurrency-linked inverse exchange-traded fund (ETF). On Tuesday, CSOP Asset Management will introduce the CSOP Bitcoin Futures Daily (-1x) Inverse Product.
BREAKING: HONG KONG SET TO LAUNCH ASIA'S FIRST BITCOIN FUTURES INVERSE PRODUCT, CSOP BITCOIN FUTURE DAILY (-1X) INVERSE ON JULY 23
— BSCN Headlines (@BSCNheadlines) July 22, 2024
This launch is an important step in Hong Kong’s efforts to strengthen its position in the global crypto financial ecosystem. The product’s primary objective is to give investors a way to profit from or hedge against future dips in the price of Bitcoin.
Bitcoin has recently seen significant volatility. In early July, its value fell below $54,000 before rising to $67,234. This rebound has been mostly attributed to optimism over Donald Trump’s potential return to government, following President Joe Biden’s decision not to seek reelection.
The launch of the inverse ETF is yet another move in Hong Kong’s ambition to position itself as a crypto-friendly hub, competing with cities such as Singapore and Dubai. Asset managers such as Harvest Global Investments Ltd. have already introduced Bitcoin and Ethereum ETFs in the city.
Ding Chen, the CEO of CSOP, expressed optimism regarding the new product. He claimed that it is achievable to collect between $50 million and $100 million in assets for the inverse Bitcoin ETF over the course of a few years. CSOP will impose a 1.99% management fee for the product.
On a global level, inverse crypto exchange-traded products have garnered almost $106 million. The Short Bitcoin Strategy ETF from ProShares is the largest of these funds, with assets totaling $62.5 million and a management fee of 1.33%.
Hong Kong’s launch of Asia’s first crypto-linked inverse ETF signals a step towards becoming the world’s leading crypto hub. The project has the potential to attract the interest of serious investors and influence the course of crypto trading in the region.
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