Later this month, the Stock Exchange of Hong Kong (HKEX) is expected to introduce Asia’s first-ever Bitcoin inverse product.
The fund, known as CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376:HK), is intended to offer inverse exposure to the fluctuations in the price of BTC.
Important Fund Information
The next Bitcoin inverse product is scheduled to launch on July 23, 2024, making it the first of its sort in Asia, according to well-known Chinese writer Colin Wu.
Notably, the product will invest directly in the monthly Bitcoin futures contracts that are closest to expiration and are traded on the Chicago Mercantile Exchange (CME), the world’s largest derivatives marketplace.
With the help of this program, investors may make predictions about the price movements of Bitcoin future contracts that are closest to expiration without having to possess the cryptocurrency.
Colin Wu also disclosed that HSBC Institutional Trust Services Limited’s Asia division will act as the fund’s trustee and overseer.
Bloomberg reports that the new fund would track the S&P Bitcoin Futures Index’s inverse daily movement before fees and expenses are taken into consideration.
This suggests that the value of the 7376:HK fund will fall by roughly the same rate on a given day when the price of the S&P Bitcoin Futures Index rises by a specific percentage, and vice versa.
Bloomberg would use its market data platform to monitor the fund’s price action once it launched. As a result of its impending listing, the market data for 7376:HK is now designated as “pending.”
In Hong Kong, Institutional Clients Are More Indirectly Exposed to Bitcoin
This development is a big step closer to giving institutional clients in Hong Kong some indirect exposure to cryptocurrencies.
Remember that in April 2024, six Ethereum and Bitcoin exchange-traded funds were accepted into Hong Kong on a spot basis. The spot crypto exchange-traded funds (ETFs) were issued on the Hong Kong Stock Exchange by three Chinese companies: Bosera Asset Management, China Asset Management, and Harvest Global Investments.
Meanwhile, the price of Bitcoin has risen 1.02% on the daily charts, bringing it back to the $65,000 mark. As of this writing, the price of Bitcoin is $65,302, which is a weekly increase of 12.96%.