After a successful 2022 launch of the company’s Bitcoin Futures ETF, CSOP is looking to capitalize on future drops in the price of BTC with its new inverse Bitcoin ETF.
On July 23, Hong Kong will see the debut of Asia’s first Bitcoin futures inverse product, the CSOP Bitcoin Future Daily (-1x) Inverse Product (7376.HK).
China Southern Asset Management Company Limited’s (CSOP) new exchange-traded fund (ETF) aims to offer investors a way to profit from a drop in the price of Bitcoin.
The move furthers the company’s expansion in the Asia-Pacific region and comes after the successful launch of the CSOP Bitcoin Futures ETF (3066. HK) in December 2022.
Product information
The inverse daily performance of the S&P Bitcoin Futures Index is expected to be closely mirrored by the investment return provided by the CSOP Bitcoin Futures Daily (-1x) inverse product.
This is accomplished by the inverse product, which invests directly into spot-month Chicago Mercantile Exchange (CME) bitcoin futures using a futures-based replication methodology.
According to CSOP’s July 22 company post, the product will be offered on the Hong Kong Stock Exchange (HKEX) at a list price of approximately 7.8 Hong Kong dollars (HKD) per unit.
Hong Kong exchange-traded funds
With the launch of CSOP’s Bitcoin futures ETF and Ether futures ETF in late 2022, HKEX began trading spot cryptocurrency ETFs.
In January 2023, Samsung Asset Management Hong Kong released its Bitcoin future ETF, trailing both products’ cash-settled contracts for BTC and Ether futures that are traded on the CME.
As of April 29, HKEX crypto ETFs managed 1.3 billion HKD ($170 million) in assets across three futures products.
HK SFC flags seven unregulated crypto exchanges
Hong Kong’s Securities and Futures Commission issued a warning on July 5 about seven cryptocurrency exchanges operating illegally in the territory.
Due to giving administrations without an working permit, the HK SFC detailed these exchanges and included to its caution list beneath the category of “suspicious virtual asset trading platforms.”
Through the maintenance of public records of registered, unregistered, and illegal crypto trading companies, the HK SFC seeks to minimize the risks associated with fraud and scams.
