On July 23, Hong Kong will witness the launch of Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK).
The new exchange-traded fund (ETF) by China Southern Asset Management Co., Ltd (CSOP) aims to offer investors a method of profiting from declines in Bitcoin’s (BTC) price.
This development follows the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, continuing the firm’s expansion in the Asia-Pacific region.
Related: HKX joins list of crypto exchanges to quit Hong Kong market
Product details
The CSOP Bitcoin Futures Daily (-1x) Inverse Product is designed to offer investment results that correspond closely to the inverse daily performance of the S&P Bitcoin Futures Index.
This inverse product achieves this through a futures-based replication strategy, which invests directly into spot-month Chicago Mercantile Exchange (CME) Bitcoin Futures.
According to a CSOP company post on July 22, the product is set to be listed on the Hong Kong Stock Exchange (HKEX) with a listing price of approximately 7.8 Hong Kong dollars (HKD) per unit.
Related: Animoca, Standard Chartered team up in HKMA stablecoin sandbox
Hong Kong crypto ETFs
HKEX has been trading spot crypto ETFs since late 2022 after CSOP introduced its Bitcoin Futures ETF and Ether Futures ETF.
Both products track BTC futures and Ether (ETH) futures cash-settled contracts traded on the CME and were followed by Samsung Asset Management Hong Kong’s Bitcoin future ETF in January 2023.
Between the three futures products, HKEX crypto ETFs had amassed 1.3 billion HKD worth $170 million in assets under management as of April 29.
Related: Hong Kong unveils new stablecoin licensing regime
HK SFC flags seven unregulated crypto exchanges
On July 5, the Securities and Futures Commission of Hong Kong issued alerts against seven crypto exchanges for illegal operations in the region.
The HK SFC flagged the exchanges for facilitating services without operational licenses and placed them under the “Suspicious virtual asset trading platforms” on its alert list.
The HK SFC aims to reduce the risks of fraud and scams by managing public records of registered, unregistered and illegal crypto trading entities.
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