- Hong Kong debuts Asia’s first inverse Bitcoin ETF.
- This ETF permits traders to revenue from BTC’s volatility.
The crypto world is buzzing as Hong Kong unveils Asia’s first inverse BTC ETFs. As reported by native media, the inverse BTC ETFs will begin buying and selling on the twenty third of July.
As reported by China Science by way of their X (previously Twitter) web page,
“Asia’s first inverse bitcoin ETF, which permits traders to wager on a fall within the cryptocurrency, is about to debut on Hong Kong’s inventory change on Tuesday.”
Asia’s first inverse BTC ETF
The anticipated fund, CSOP Bitcoin Futures Every day (-1x) Inverse product, shall be listed on the Hong Kong Inventory Change. The Inverse BTC ETFs are totally different from the standard ETFS.
Not like the standard BTC ETFs, the fund permits traders to wager in opposition to the market. Due to this fact, it permits merchants to revenue from BTC’s decline in costs.
Because the introduction of Bitcoin ETFs, the coin has skilled excessive volatility, from a excessive of $73k to beneath $60k. As an illustration, as of this writing, BTC has an annualized volatility of 48.56%.
Due to this fact, this volatility is what the ETF expects to leverage.
Supply: The Block
The ETF targets ship earnings reverse of the every day S&P BTC futures index. Moreover, it’s going to replicate the goal efficiency utilizing a future-based strategy that entails coming into brief positions.
Traders will enter BTC future contracts that expire after one month. Thus, the Fund helps traders predict and make the timing of the BTC market by offering choices for revenue in value declines.
Broadly, the Change traded fund is about at 7.8HKD and is particularly custom-made for traders preferring better management over their portfolios.
Learn Bitcoin’s [BTC] Value Prediction 2024-25
Implications on traders
Notably, the inverse ETF gives traders who’re hesitant in direction of BTC over market volatility an opportunity to handle their dangers. Equally, the fund gives a novel path for traders to revenue from bearish market situations.
Nonetheless, CSOP warned traders that such investments might plummet over 20% in a single day, resulting in substantial losses.