Asset management company CSOP to launch Asia first Inverse Bitcoin ETF in Hong Kong

On July 23, 2024, CSOP Asset Management Ltd. plans to list Asia's first Bitcoin futures inverse product in Hong Kong, following the successful launch of the region's first Bitcoin futures ETF, the CSOP Bitcoin Futures ETF (3066.HK), in December 2022.

The purpose of the CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK) is to deliver investment returns that closely match the S&P Bitcoin Futures Index's one-time inverse daily performance, before fees and expenses. The inverse bitcoin ETF (7376.HK) has successfully raised an initial investment of approximately $30 million US dollars, with a listing price of approximately HKD 7.8 per unit, a trading lot of 100, and a management fee of 1.99%, the post added.

The company said "Leveraged funds' net short interest in Bitcoin CME futures reached a record high of roughly USD 5.7 billion by the end of June 2024. This is probably because basis trades are becoming more common. There might be even more of a drawdown in bitcoin when the market is collapsing, which would indicate more opportunities for short trades."

The presidential election in the United States uncertainty, the Fed's monetary policy, and the supply overhang could all have an impact on the price of Bitcoin.

The CSOP Bitcoin Futures Daily Inverse Product has been listed, as announced with great pleasure by Ms. Ding Chen, CEO of CSOP Asset Management Limited. Chen said that "CSOP has always sought to provide comprehensive and diversified investment products as an ETF issuer respected by investors in the Asia-Pacific Area (APAC) region. We are currently Hong Kong's leading provider of leveraged and inverse products, holding 99% of the market. Opportunities for investors to profit from downturns in bitcoin are created by the first futures-based inverse bitcoin product listed in Hong Kong."

Due to growing expectations that Republican presidential nominee Donald Trump would win back the White House, bitcoin has experienced a significant upswing in value over the last few weeks. After the President of the United States of America, Joe Biden, announced his decision to withdraw from the presidential race, Bitcoin slightly increased and traded at around $67,400 on Monday.

Bitcoin price is extremely speculative and volatile due to its lack of intrinsic value. The digital asset is impacted by supply and demand in the market, as well as rumors and news about it.

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