The first Asia-based inverse bitcoin exchange traded fund, Bitcoin ETF, which allows investors to wager on the fall of cryptocurrency prices, will debut in Hong Kong this Tuesday.
What does the Bitcoin ETF launch holds?
Hong Kong’s CSOP Asset Management announced that it would launch the CSOP Bitcoin Futures Daily Inverse Product (-1x) on the stock exchange of the city on Tuesday.
The ETF will take advantage of the rising demand and profit from volatile cryptocurrency trading. The second quarter of bitcoin’s performance was a bit bumpy after the Hong Kong ETFs were launched in April. Bitcoin lost more than 12%.
The first futures-based inverse Bitcoin product listed in Hong Kong provides investors with opportunities to profit from the downside movements of bitcoin, said Ding Chen CEO of CSOP Asset Management.
The company said that Bitcoin was the most volatile asset in the world in the past ten years. Its volatility could reach 38.3% by 2023 and surpass crude oil as well as the Nasdaq 100.
Bitcoin has rebounded in recent weeks due to increased expectations that Republican Presidential nominee Donald Trump will regain the White House. The price of bitcoin was slightly higher on Monday, trading at $67400 after U.S. Vice President Joe Biden announced his decision to withdraw from the presidential race.
The firm stated that CSOP’s inverse Bitcoin product aims to deliver a return which closely matches the S&P Bitcoin Futures Index’s inverse daily performance.
CSOP launched Asia’s first Bitcoin futures ETF at Hong Kong in 2022. The ETF’s market value grew from $58 million to over $100 million in the first half of this year due to the global crypto rally.
