New reverse Bitcoin product on HKEX allows betting on falling prices, potentially attracting diverse investors.
The CSOP Daily Reverse Bitcoin Futures Product (-1x) was listed on the Hong Kong Stock Exchange today, allowing investors to bet on the falling price of Bitcoin. Jag Kooner, Head of Derivatives at Bitfinex, believes that this product can cause potential volatility in the crypto market and represents investor sentiment, when starting to trade along with election stories. nomination and Ethereum ETF.
“The launch of Asia's first inverse Bitcoin futures product in Hong Kong could mark a significant development in Asia's financial and crypto markets, especially following the comprehensive ban of China for most Crypto activities,” Kooner told Crypto Briefing. CSOP is an asset manager covering the China, Hong Kong and US markets.
Notably, this product could offer investors a unique opportunity to profit from Bitcoin price fluctuations, which reflects “increasing sophistication and diversity in the investment tools available in the digital asset space.”
Furthermore, when acting as a tool for diversification and risk management, inverse BTC futures can help sophisticated traders hedge their positions during periods of high volatility. “By allowing profits from falling prices, it can help manage risk, especially during periods of market volatility.”
This could therefore attract a wider range of investors, even those with negative views on Bitcoin's short-term prospects. This leads to higher volume and liquidity in the Bitcoin futures market.
Kooner also highlighted the regulatory milestone this product represents, as it demonstrates Hong Kong's ambition to become a leading center for crypto and blockchain innovation.
“Hong Kong has long been a hub for financial innovation and is also known for its flexible approach to financial institutions, and this move further cements its position as a leading player. in the cryptocurrency market. This demonstrates a deeper understanding of investor needs and a commitment to providing a range of financial instruments that can suit different market conditions.”
As investors look to diversify their investments and position themselves for the months ahead, the Head of Derivatives at Bitfinex assessed that market participants should pay attention to the potential for volatility. “Reverse products can influence short-term price movements and provide insight into investor sentiment,” Kooner concluded.
Source: https://tapchibitcoin.io/hop-dong-tuong-lai-bitcoin-dao-nguoc-cua-hong-kong-co-the-gay-bien-dong.html
