Gairika Mitra
Hong Kong’s CSOP Asset Management introduced the region’s first Bitcoin Futures Inverse ETF on the Hong Kong Stock Exchange (HKEX) on Tuesday. This product marks a massive development in the cryptocurrency market, providing investors with a new tool to capitalize on declines in Bitcoin’s price.
The CSOP Bitcoin Futures Daily (-1x) Inverse Product aims at long-term capital growth and invests in CME Bitcoin Futures primarily. Its operations include employing an investment strategy which is actively managed. The ETF also does not track any specific index or benchmark. This provides room for an investment strategy which is flexible, even though its price movement can slightly differ from Bitcoin’s spot price, as per CSOP’s website.
It also wants to invest primarily in standardized, cash-settled Bitcoin futures contracts and/or micro-Bitcoin future contracts that are traded on the Chicago Mercantile Exchange (CME).
Industry Reactions and Market Impact
Ryan Lee, chief analyst at Bitget Research, said that the launch of Asia’s first Bitcoin Futures Inverse Product marked a significant development in Hong Kong’s cryptocurrency market.
“This product allows investors to profit from a decline in Bitcoin prices, reflecting the growing interest and investment options in the cryptocurrency sector,” Lee told The Shib Daily. “Managed by CSOP Asset Management, it expands the range of cryptocurrency-related financial instruments in Asia, highlighting Hong Kong’s influence in the global cryptocurrency market” he added.
The Crypto Council for Innovation noted that the ETF could help investors to benefit from Bitcoin’s volatility. In a LinkedIn post, the council stressed the ETF’s potential impact on global trading and investment in digital assets.
Conio’s blog further highlights the ETF’s expected impact. “The introduction of this ETF, which provides direct access to the market value of Bitcoin, is expected to strengthen Hong Kong’s position as one of the leading global hubs for cryptocurrency trading and investment.
The Bitcoin ETF could generate demand of up to $25 billion, according to estimates from Matrixport, providing traders in China with more direct access to digital assets,” it said.
The crypto community on X people mostly had a positive view of the development. Lord Crypto (@lordcrypto__), an investor, expressed optimism and called this is a “positive development” on the aspect of regulation. “This product is meant to operate like a “short” trade where investors get to earn from $BTC’s price decline. Now, institutional investors can bet against Bitcoin, so if the price of $BTC falls, they profit. In the aspect of regulation, I’d say this is a positive development. But I’m a bit bothered about market manipulation.”
Other crypto advocates have been enthusiastic too. They saw it as positive and robust.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
