Hong Kong is set to introduce Asia-Pacific's first crypto-linked inverse exchange-traded fund (ETF), allowing investors to bet on Bitcoin amid market volatility due to influenced by political developments in the United States.
CSOP Asset Management will launch the CSOP Bitcoin Futures Daily (-1x) Inverse Product on Tuesday, marking a significant development in Hong Kong's crypto finance scene. This product aims to provide investors with a way to hedge or profit from the possibility of Bitcoin prices falling.
This launch comes as Bitcoin experiences volatility, having fallen below $54,000 in early July before recovering to $67,290 at press time. The recent price surge has been attributed to optimism surrounding the return to office of cryptocurrency advocate Donald Trump following US President Joe Biden's decision to abandon his re-election bid.
For Hong Kong, the inverse ETF is another step forward in the city's ongoing efforts to establish itself as a crypto-friendly hub, competing with cities like Singapore and Dubai. The city has seen the launch of Bitcoin and Ether ETFs by asset management firms including Harvest Global Investments Ltd. and a partnership between HashKey Capital and Bosera Asset Management on April 30, although these products have not been well received so far.
CSOP CEO Ding Chen expressed confidence in the new product, claiming that the inverse Bitcin ETF could attract inflows of $50 million to $100 million over several years. The company will charge a management fee of 1.99%. Chen also noted that some traders predict Bitcoin could reach $100,000 “very soon” stemming from Trump-fueled optimism, highlighting the need for risk control options for investors.
Globally, inverse crypto-traded swap products have attracted around $106 million to date. The largest of these funds, the Short Bitcoin Strategy ETF from ProShares, has amassed $62.5 million in assets with a 1.33% management fee.
Hong Kong's crypto ambitions go beyond ETFs, with authorities licensing two crypto exchanges for limited retail trading and rolling out an in-kind subscription and redemption mechanism for ETF units.
https://tapchibitcoin.io/bitcoin-etf-nghich-dao-dau-tien-hong-kong.html
