Thomas Daniels
Hong Kong’s stock exchange is launching its first Bitcoin inverse investment product, enabling traders to bet against the largest cryptocurrency by market capitalization.
Hong Kong’s stock exchange is set to debut the Bitcoin Futures Daily Inverse Product, offered by CSOP Asset Management. This product, denominated in U.S. dollars, allows investors to take short positions in Bitcoin futures traded on the Chicago Mercantile Exchange (CME), thereby profiting from declines in Bitcoin prices. According to CSOP, the product is highly volatile, with values potentially dropping more than 20% in a single day.
This new inverse financial product follows the approval three months prior of six spot exchange-traded funds (ETFs) investing directly in Bitcoin and Ethereum. Despite these advancements, the region has yet to attract significant trading interest, with inflows remaining modest compared to the U.S. market.
Hong Kong, which was the first to introduce spot Ethereum ETFs and establish a licensing regime for centralized crypto exchanges, continues to refine its regulatory framework for the crypto sector. In mid-July, financial regulators reported receiving over 100 submissions advocating for a stablecoin licensing regime.
As reported by crypto.news, a majority of respondents in a public consultation supported regulatory oversight to ensure the stable and responsible growth of the stablecoin ecosystem.
