Key Features of the Fund
According to renowned Chinese reporter Colin Wu, the Bitcoin inverse product will be available starting July 23, 2024, marking a significant milestone for the Asian market.
"Exclusive: On July 23, the Hong Kong Stock Exchange will launch Asia's first Bitcoin inverse product, named CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376 HK), which directly invests in the nearest expiring monthly Bitcoin futures traded on the CME. The trustee is HSBC…" — Wu Blockchain (@WuBlockchain), July 19, 2024.
The fund will directly invest in the nearest expiring monthly Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME), the leading global derivatives marketplace. This allows investors to speculate on Bitcoin's price movements without actually holding the cryptocurrency.
Additionally, the Asia arm of HSBC Institutional Trust Services Limited will serve as the trustee, ensuring the fund's proper oversight.
Tracking the S&P Bitcoin Futures Index
As reported by Bloomberg, the fund is designed to track the inverse daily movements of the S&P Bitcoin Futures Index, before accounting for fees and expenses. This means that if the S&P Bitcoin Futures Index rises by a certain percentage in a day, the value of the 7376
fund will decrease by approximately the same rate, and vice versa.
Bloomberg will monitor the fund’s price action via its market data platform once the fund is launched. Currently, the market data for 7376
is marked as “pending” in anticipation of its listing.
Expanding Institutional Access to Bitcoin in Hong Kong
This development is a significant step toward providing institutional clients in Hong Kong with indirect exposure to cryptocurrencies.
In April 2024, Hong Kong welcomed six spot-based Bitcoin and Ethereum exchange-traded funds. These were issued by Chinese firms Bosera Asset Management, China Asset Management, and Harvest Global Investments, marking a broader acceptance and integration of cryptocurrencies in traditional financial markets.
Currently, Bitcoin’s price has returned to the $65,000 range, showing a daily increase of 1.02%. At the time of writing, Bitcoin is trading at $65,302, reflecting a weekly surge of 12.96%.
