Hong Kong launches Asia's first Bitcoin inverse ETF

Hong Kong asset management company CSOP launched Asia's first Bitcoin (BTC) futures inverse exchange-traded fund (ETF), which bets on a decline in the price of Bitcoin.

According to Cointelegraph on the 22nd (local time), the Hong Kong Stock Exchange (SEHK) will support trading of CSOP's BTC futures inverse ETF product from this day. The official name is ‘CSOP BTC Futures Daily (-1x) Inverse’ and the starting price is about 7.8 Hong Kong dollars (about 1,385 won).



CSOP explained the background for its launch, saying, “Even if you want to take a short position for risk hedging, it is difficult to use only the currently listed products.” He continued, “We expect that $50 million (KRW 69.3435 billion) to $100 million (approximately KRW 138.687 billion) of funds will flow into the BTC futures inverse ETF in the future.” He added, “In the future, CSOP will support Ethereum (ETH) inverse ETF.” “We will also accelerate the launch of ETFs,” he added.

Meanwhile, an inverse ETF is a financial product that allows investors to make profits when the value of investment assets falls. Conversely, when BTC futures prices fall, the value of the ETF rises.

Reporter Lee Yeon-ju

juya@rni.kr