Hong Kong Set to Launch Asia’s First Inverse Bitcoin ETF

The Hong Kong Stock Exchange (HKEX) is set to make history tomorrow with the debut of Asia's first inverse Bitcoin exchange-traded fund (ETF).

The CSOP Bitcoin Futures Daily (-1x) Inverse Product will start trading on July 23rd. This ETF will invest in short positions on Bitcoin futures contracts listed on the Chicago Mercantile Exchange, offering traders exposure to the daily inverse performance of the underlying Bitcoin futures index.

This new tool allows traders to hedge risk or speculate on declines in Bitcoin's price by going short on Bitcoin futures. It provides an alternative to directly shorting Bitcoin or buying put options.

Managed by CSOP Asset Management with HSBC as the trustee, the inverse ETF charges an annual fee of 1.99% and aims to attract between $50 million and $100 million in assets under management within one to two years.

The launch has generated interest as a way to trade Bitcoin volatility. While some view it as controversial, inverse Bitcoin ETFs are gaining popularity worldwide. 

The ProShares Short Bitcoin ETF (BITI) in the U.S. manages over $70 million in assets.

The CSOP product will be the first of its kind in Asia, introducing inverse Bitcoin exposure to Hong Kong's $5.4 trillion stock market.