Hong Kong Stock Exchange Launches First Bitcoin Inverse Investment Product

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 rolling out its first Bitcoin inverse investment product, allowing traders to bet against the largest cryptocurrency by market capitalization.

The bourse will debut the Bitcoin Futures Daily Inverse Product, offered by CSOP Asset Management, according to a statement on Monday. The product, denominated in U.S. dollars, enables investors to take short positions in Bitcoin futures traded on the Chicago Mercantile Exchange (CME), essentially profiting from declines in Bitcoin prices.

The product is highly volatile, with a net asset value that may drop by more than 20% in a single day, CSOP noted.

The new inverse financial product comes after the bourse obtained approval three months ago to launch six spot exchange-traded funds (ETFs) investing directly in Bitcoin and Ethereum. However, the region is yet to attract substantial trading interest, with inflows being modest compared to the U.S. market.

Having introduced the first spot Ethereum ETFs and established a licensing regime for centralized crypto exchanges, Hong Kong is further refining its regulatory framework for the crypto sector.

In mid-July, financial regulators disclosed that they had received over 100 submissions calling for a stablecoin licensing regime.

A majority of respondents in a public consultation supported regulatory oversight to ensure the stable and responsible growth of the stablecoin ecosystem, crypto.news reported.

The above is the detailed content of Hong Kong Stock Exchange Launches First Bitcoin Inverse Investment Product. For more information, please follow other related articles on the PHP Chinese website!