In a surprising turn of events, Hong Kong is set to debut Asia’s first inverse bitcoin exchange-traded fund (ETF) this Tuesday, allowing investors to profit from a decline in the cryptocurrency’s value. The CSOP Bitcoin Futures Daily (-1x) Inverse Product, launched by CSOP Asset Management, will be available on the city’s stock exchange, offering a novel way to navigate the turbulent crypto waters.
Ding Chen, CEO of CSOP Asset Management, is enthusiastic about the ETF’s potential. “The first futures-based inverse bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin,” Chen stated, highlighting the ETF’s innovative approach.
Bitcoin’s wild ride over the past decade has made headlines, especially with its staggering volatility of 38.3% in 2023 alone, outpacing both crude oil and the Nasdaq 100. The roller-coaster ride continued as bitcoin rebounded strongly in recent weeks. The cryptocurrency saw a slight uptick, trading at around $67,400 on Monday.
CSOP’s new product is designed to mirror the one-time inverse daily performance of the S&P Bitcoin Futures Index, making it a unique tool for those looking to hedge against or profit from bitcoin’s potential decline. This move follows CSOP’s earlier success with Asia’s first bitcoin futures ETF, launched in 2022. The ETF saw its market value surge to over $100 million during the global crypto rally earlier this year but has since dropped to about $58 million as of last Friday.
As the crypto market remains as unpredictable as ever, Hong Kong’s new ETF offers a fresh perspective for investors eager to capitalize on bitcoin’s next move – whether it goes up or down.
(Source: Coin Telegraph | Crypto Magazine | Bitcoin News)
