CSOP Asset Management has launched Hong Kong's first inverse Bitcoin ETF, giving investors a new tool to hedge risk and benefit from Bitcoin's downward price volatility.
This event marks a new step forward in Hong Kong's efforts to become a global digital financial center. The inverse Bitcoin ETF, with the stock code CSOP Bitcoin Futures Daily (-1x), has officially traded on the Hong Kong market since July 23.
An inverse Bitcoin ETF is a type of exchange-traded fund (ETF) designed to generate returns inverse to the performance of Bitcoin . In other words, when the price of Bitcoin falls, the value of the inverse ETF will increase.
Mr. Ding Chen, CEO of CSOP Asset Management, said that the inverse ETF will provide investors, especially institutional investors, with an effective tool to manage portfolio risk in the context of strong fluctuations in the Bitcoin market.
“Inverse Bitcoin ETFs allow investors to diversify their portfolios and hedge against downside risk without directly shorting Bitcoin,” Mr. Chen Chia .
Although most analysts predict a long-term price increase for Bitcoin, the market could still see short-term downward corrections.
CSOP Asset Management expects the Inverse Bitcoin ETF to attract between $50 and $100 million in investment Capital over the next two years. The company is also planning to launch an inverse Ethereum ETF in the near future.
The launch of the Inverse Bitcoin ETF is a testament to Hong Kong's openness and progress in embracing new digital financial products. This will contribute to attracting international investment Capital and strengthening Hong Kong's position as a leading global financial center.
