of Hong Kong The Hong Kong Stock Exchange (HKEX) will make history tomorrow by launching Asia’s first reverse Bitcoin exchange-traded fund (ETF).
Latest Updates: đź‡đź‡°Asia’s first reverse #Bitcoin The ETF launches tomorrow in Hong Kong. pic.twitter.com/HSV28BZd2l
— Bitcoin Magazine (@BitcoinMagazine) July 22, 2024
The CSOP Bitcoin Futures Daily (-1x) Inverse product will begin trading on July 23. The ETF will invest in short positions in Bitcoin futures contracts traded on the Chicago Mercantile Exchange, allowing traders to gain exposure to the daily inverse performance of the underlying Bitcoin futures index.
Traders can hedge their risk or bet on a price drop by shorting Bitcoin futures. This new tool provides an alternative to shorting Bitcoin or buying put options directly.
The inverse ETF is managed by CSOP Asset Management and acted as trustee by HSBC, charges an annual fee of 1.99% and aims to achieve $50 million to $100 million in assets under management in one to two years.
The launch has been met with buzz as a new way to trade Bitcoin volatility. While it may be controversial for some, Bitcoin ETFs It is becoming increasingly popular around the world: The US-based ProShares Short Bitcoin ETF (BITI) has over $70 million in assets under management.
The CSOP product will be the first of its kind in Asia, providing inverse Bitcoin exposure to Hong Kong’s $5.4 trillion stock market, marking another milestone towards Bitcoin’s mainstream adoption in the region.
