On July 23, the CSOP Bitcoin Futures Daily (-1x) Inverse product (7376.HK), Asia’s first Bitcoin futures inverse product, will be launched in Hong Kong.
A new exchange-traded fund (ETF) from CSOP Asset Management, one of China’s largest asset managers, aims to give investors a way to profit from falling Bitcoin (BTC) prices.
The development follows the successful launch of the CSOP Bitcoin Futures ETF (3066.HK) in December 2022 and continues the company’s expansion in the Asia Pacific region.
Related: HKX joins growing list of crypto exchanges withdrawing from Hong Kong market
Product details
The CSOP Bitcoin Futures Daily (-1x) Inverse Product is designed to provide investment results that closely correspond to the inverse daily performance of the S&P Bitcoin Futures Index.
The inverse product achieves this through a futures-based replication strategy that invests directly in Chicago Mercantile Exchange spot Bitcoin futures.
according to According to an announcement by CSOP on July 22, the product will be listed on the Hong Kong Stock Exchange (HKEX) at a listing price of approximately HK$7.8 per share.
Related: Animoca and Standard Chartered Partner in Hong Kong Monetary Authority’s Stablecoin Sandbox
Hong Kong Cryptocurrency ETF
HKEX has been trading spot crypto ETFs since late 2022, after the CSOP introduced a Bitcoin Futures ETF and an Ethereum Futures ETF.
Both products track cash-settled BTC futures and Ether (ETH) futures contracts traded on the CME, and were followed in January 2023 by the Samsung Asset Management Hong Kong Bitcoin Futures ETF.
Combined across the three futures products, the HKEX crypto ETF had amassed HK$1.3 billion in assets under management worth $170 million as of April 29.
Related: Hong Kong Announces New Stablecoin Licensing Scheme
Hong Kong Monetary Authority cracks down on seven unregulated cryptocurrency exchanges
On July 5, the Hong Kong Securities and Futures Commission (SFC) issued a warning about seven cryptocurrency exchanges operating illegally in the region.
The SFC warned that these exchanges were providing services without an operating license and included them on its warning list of “suspicious virtual asset trading platforms.”
The SFC aims to reduce the risk of fraud and deception by maintaining a public register of registered, unregistered and illegal cryptocurrency trading entities.
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