Hong Kong’s stock exchange is launching its first Bitcoin inverse investment product, allowing traders to bet against the largest by market cap crypto.
Hong Kong’s stock exchange is set to debut its first Bitcoin (BTC) inverse investment product, expanding its virtual asset offerings. This move aims to enhance its position as a leading financial hub.
According to the South China Morning Post, CSOP Asset Management’s new product, the Bitcoin Futures Daily Inverse Product, is denominated in U.S. dollars. It takes short positions in Bitcoin futures traded on the Chicago Mercantile Exchange, allowing traders to benefit from declines in market prices. CSOP warns of significant volatility, with values potentially dropping over 20% in a single day.
The new inverse financial product follows the approval three months prior of six spot exchange-traded funds (ETFs) that invest directly in Bitcoin and Ethereum (ETH). Despite these efforts, the region has yet to attract significant trading interest, showing modest inflows compared to the U.S. market.
Hong Kong was the first to introduce spot Ethereum ETFs and establish a licensing regime for centralized crypto exchanges. The region continues developing its regulatory framework for the crypto sector. In mid-July, financial regulators disclosed receiving over 100 submissions advocating for a stablecoin licensing regime.
