The Hong Kong Stock Exchange is set to launch Asia's first Bitcoin inverse product called CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376 HK) on July 23.
This innovative product will invest directly in the most recent monthly Bitcoin futures traded on the Chicago Mercantile Exchange (CME), one of the leading global derivatives markets.
The trustee for this venture is registered as HSBC Institutional Trust Services (Asia) Limited. This product allows investors to make predictions on the price movements of Bitcoin futures contracts that are closest to maturity, without having to hold the cryptocurrency itself.
The BTC inverse product comes with a 2.00% annual average daily ongoing fee and an estimated annual average daily tracking spread of -0.05%.
An inverse Bitcoin ETF is a financial product that provides returns that are opposite to its underlying asset, Bitcoin. If the price of Bitcoin falls, the value of the ETF will rise.
This allows investors to profit from declines in BTC price without having to short the asset directly.
Inverse ETFs are generally designed for short-term trading and may not perfectly track the inverse performance of BTC over longer periods of time due to factors such as fees and tracking errors.
*This is not investment advice.