Hong Kong launches Asia's first cryptocurrency-linked inverse ETF

Hong Kong is gearing up to launch Asia's first cryptocurrency-linked inverse exchange-traded fund (ETF), as asset manager CSOP will introduce its daily inverse (-1x) CSOP Bitcoin futures product tomorrow, Tuesday.

The launch is an important step in Hong Kong's efforts to strengthen its position in the global cryptocurrency financial system, with the aim of giving investors a way to profit from or hedge against future declines in the price of Bitcoin.

Bitcoin has seen significant volatility recently, with the value of Bitcoin falling in early July to below $54,000 before rising to $67,234.

This rebound is mainly due to optimism about Donald Trump's potential return to government, following President Joe Biden's decision to suspend his election campaign.

The launch of the inverse ETF is another step in Hong Kong's efforts to position itself as a crypto-friendly hub, allowing it to compete with cities like Singapore and Dubai.

Asset managers such as Harvest Global Investments Ltd have already introduced Bitcoin and Ethereum ETFs into the city.

CSOP CEO Ding Chen expressed optimism about the new product, estimating that between $50 million and $100 million in assets could be raised for an inverse ETF over the course of a few years.

CSOP will charge a 1.99% administration fee for the product.

Globally, exchange-traded cryptocurrency products generated approximately $106 million.

ProShares' Short Bitcoin Strategy ETF is the largest of these funds, with $62.5 million in total assets and a management fee of 1.33%.

Posted using Tribaldex Blog