- Hong Kong is set to launch the Asia-Pacific region’s first crypto-linked inverse ETF.
- The CSOP Bitcoin Futures Daily (-1x) Inverse Product is expected to attract between $50 million and $100 million in assets.
- The launch of the inverse ETF comes as Bitcoin surges to $68,480, with hopes of $100K.
Hong Kong is set to launch the Asia-Pacific region’s first crypto-linked inverse ETF, allowing investors to bet on a decline in the price of Bitcoin. The CSOP Bitcoin Futures Daily (-1x) Inverse Product, launched by CSOP Asset Management Ltd., will go live on Tuesday morning, providing investors with a unique tool to hedge against potential losses in the world’s largest cryptocurrency.
The launch comes at a time when Bitcoin is experiencing a resurgence, coinciding with Donald Trump’s increasing likelihood of emerging as president of the United States. Bitcoin has rallied to $68,480 today, up from a low of around $53,000 in early July.
Despite these recent gains, investors have experienced a volatile ride this month, and the inverse ETF aims to provide a much-needed risk management tool. CSOP’s CEO, Ding Chen, expects the product to attract significant assets, estimating that it could collect between $50 million and $100 million over the next two years. The firm will charge a management fee of 1.99% for this product.
Chen also hinted that some traders believe Bitcoin could reach $100,000 “very soon,” making the inverse ETF an attractive option for those looking to mitigate potential losses.
Hong Kong’s efforts to establish itself as a crypto-friendly hub are gaining momentum, with the city’s authorities licensing two crypto exchanges and allowing limited retail trading. The launch of the inverse ETF follows the listing of Bitcoin and Ethereum ETFs in April, which have so far attracted $362 million in assets.
CSOP is also working on launching an inverse Ethereum ETF, further expanding investor options. The firm expects demand for its inverse Bitcoin ETF to come from investors in Japan, Korea, and Singapore.
Globally, inverse crypto exchange-traded products have attracted around $106 million in assets, with the largest fund being the ProShares Short Bitcoin Strategy ETF, which has collected $62.5 million in assets.
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