CSOP Bitcoin Futures Daily (-1x) Inverse Product (7376.HK) to list on Hong Kong Stock Exchange Tomorrow
22 Julio 2024 - 4:41AM
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.
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CSOP Bitcoin Futures Daily (-1x) Inverse
Product (7376.HK) (Graphic: Business Wire)
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
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For further inquiries, please contact: Jennifer Li/ +852 3406
5650 / market.intelligence@csopasset.com Tina Shu / +852 3406 5675
/ market.intelligence@csopasset.com