HONG KONG--(BUSINESS WIRE)--Following the successful launch of Asia’s first Bitcoin futures ETF, the CSOP Bitcoin Futures ETF (3066.HK) in December 2022, CSOP is set to list Asia’s first Bitcoin futures inverse product in Hong Kong on July 23, 2024. The CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK) aims to provide investment results that, before fees and expenses, closely correspond to the one-time inverse daily performance of the S&P Bitcoin Futures Index (the “Index”). 7376.HK adopts a futures-based replication strategy to achieve the investment objectives, investing directly in the spot month CME Bitcoin Futures following a rolling strategy. With a listing price of about HKD 7.8 per unit, trading lot of 100, and management fee of 1.99%, 7376.HK has received an initial investment of around 30 million US dollars.
Bitcoin has been the most erratic among major global assets in the last ten years, with volatility as high as 38.3% in 2023, surpassing crude oil and Nasdaq-1001. With no intrinsic value, its price is highly volatile and speculative, influenced by market demand and supply, as well as market news and rumours. During the rally in 2024Q1, global futures-based bitcoin inverse products had the highest quarterly inflow of USD 79 million since 2023Q22. As of end of June 2024, Bitcoin CME futures saw a record high in net short interest among leveraged funds, at about USD 5.7 billion, likely due to a growing popularity of basis trade3. When market reels, bitcoin drawdown could be even more prominent, suggesting more chances for short trades. Bitcoin price might also be affected by uncertainties amid the US presidential election, supply overhang, and Fed’s monetary policy.
The Index tracks the performance of the nearest maturing monthly Bitcoin Futures contracts (Symbol: BTC) trading on CME. The Index is a price weighted, excess return (and not a total return) index and therefore reflects the CME Bitcoin Futures price movements only (and not any notional interest earnings) in USD. Instead of directly participating in the bitcoin futures market to short bitcoin, 7376.HK offers an easy and efficient way to capture investment opportunities brought by the decline in the price of bitcoin futures.
Ms. Ding Chen, CEO of CSOP Asset Management Limited, is delighted to announce the listing of CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK). She remarks, "As an ETF issuer esteemed by investors in the APAC region, CSOP has always aimed to offer comprehensive and diversified investment products. We are currently the leading provider of Leveraged and Inverse products in Hong Kong, with a market share of 99%4. The first futures-based inverse bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin."
About CSOP
CSOP is a leading ETF issuer in Hong Kong SAR, with a wide range of product offerings across equity, fixed income, leveraged and inverse, thematic, money market, and virtual assets. In Q1 2024, 5 out of 10 of the most traded ETFs on the Hong Kong Stock Exchange are CSOP-issued products*. Innovation and leadership are deeply rooted in CSOP’s DNA as we strive to bring first-of-its-kind products to the market, educate investors about ETF trading, and never stop looking for ways to improve trading efficiencies.
CSOP’s commitment to cross-border initiatives and collaborations is unwavering. we are the only product issuer participating in all the ETF connectivity programs between mainland China and Hong Kong SAR, capturing an 69.08% market share of the aggregate southbound AUM**, as well as the first issuer to participate in the China – Singapore Cross-border ETF Link Scheme.
* Source: 2024/01/01-2024/03/28, Bloomberg.
** Source: HKEX, SZSE, SSE, Bloomberg, as of 2024/06/28.
Disclaimer
The products of CSOP Asset Management Limited (“CSOP”) mentioned in this document are authorized by the Securities and Futures Commission ("SFC") in Hong Kong. Such authorization does not imply any official recommendation by the SFC. This document and the information contained in it are for general information only and do not constitute financial, professional, investment or any other kind of advice in any way. Investment involves risk. Investors should not base on this document alone to make investment decisions. CSOP recommends investors to obtain and read a copy of the offering documents for detailed information (including risk factors) before investing. CSOP does not warrant the accuracy, reliability, timeliness, completeness or reasonableness and CSOP shall not be liable for any loss, damage or expense incurred directly or indirectly as a result of the use of and/or reliance upon the whole or any part of the information in this document. This document is not applicable in jurisdictions where the distribution of this material is restricted. The product is only available in jurisdictions where it can be lawfully provided. For the Index Provider Disclaimer, please refer to the Product’s offering document. This document is prepared by CSOP and has not been reviewed by the SFC.
CSOP Bitcoin Futures Daily (-1x) Inverse Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited like stocks.
- This product primarily invests in short positions of CME Bitcoin Futures whose price movement may deviate significantly from the spot price of bitcoin. This product does not seek to deliver a daily return of the inverse performance of spot bitcoin.
- This product is not intended for holding longer than one day as the performance of this product over a longer period may deviate from and be uncorrelated to the inverse performance of the Index over the period
- This is an inverse product. It is different from conventional exchange traded funds as it seeks inverse investment results relative to the Index and only on a daily basis.
- Investments linked to bitcoin can be highly volatile compared to investments in traditional securities
Please note that the above listed investment risks are not exhaustive, and investors should read the Prospectus and the Product Key Facts for further details (including the full list risk factors) before making any investment decision.
Issuer: CSOP Asset Management Limited
1 Source: Bloomberg, 2023/01/01-2023/12/31
2 Source: Bloomberg, as of the end of 2024Q2
3 Source: Bloomberg, as of 2024/07/09
4 Source: Bloomberg, 2024/01/01 – 2024/03/28
Contacts
For further inquiries, please contact:
Jennifer Li/ +852 3406 5650 / market.intelligence@csopasset.com
Tina Shu / +852 3406 5675 / market.intelligence@csopasset.com