Hong Kong’s stock exchange is launching its first Bitcoin inverse investment product, allowing traders to bet against the largest cryptocurrency by market cap.

Hong Kong’s stock exchange is set to debut its first Bitcoin inverse investment product, expanding its virtual asset offerings as it aims to enhance its position as a leading financial hub.

CSOP Asset Management’s new product, the Bitcoin Futures Daily Inverse Product, denominated in U.S. dollars, takes short positions in Bitcoin futures traded on the Chicago Mercantile Exchange. This allows traders to benefit from declines in market prices. According to CSOP, the product is subject to significant volatility, with the potential for values to drop by more than 20% in a single day.

The new inverse financial product follows the approval three months prior of six spot exchange-traded funds (ETFs) that invest directly in Bitcoin and Ethereum. Despite these efforts, the region has yet to attract significant trading interest, showing modest inflows compared to the U.S. market.

Hong Kong, which was the first to introduce spot Ethereum ETFs and establish a licensing regime for centralized crypto exchanges, continues to develop its regulatory framework for the crypto sector. In mid-July, financial regulators disclosed receiving over 100 submissions advocating for a stablecoin licensing regime.

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

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