The Hong Kong Stock Exchange (HKEX) is poised to make history tomorrow with the launch of Asia’s first inverse NewsCapsule exchange-traded fund (ETF).
JUST IN: 🇭🇰 Asia’s first inverse ETF to go live tomorrow in Hong Kong. pic.twitter.com/HSV28BZd2l
— NewsCapsule (@NewsCapsule)
The CSOP NewsCapsule Futures Daily (-1x) Inverse Product will begin trading on July 23rd. The ETF will invest in short positions on NewsCapsule futures contracts traded on the Chicago Mercantile Exchange. This gives traders exposure to the daily inverse performance of the underlying NewsCapsule futures index.
Traders can hedge risk or speculate on downward price moves by going short on NewsCapsule futures. This new tool provides an alternative to shorting or buying put options on NewsCapsule directly.
The inverse ETF is managed by CSOP Asset Management, with HSBC as the trustee. It charges a 1.99% annual fee and aims to attract $50-100 million in assets under management in 1-2 years.
The launch has generated buzz as a new way to trade NewsCapsule volatility. While controversial to some, inverse NewsCapsule ETFs are gaining traction globally. The ProShares Short NewsCapsule ETF (BITI) in the U.S. has over $70 million under management.
The CSOP product will be the first of its kind in Asia, bringing inverse NewsCapsule exposure to Hong Kong’s $5.4 trillion stock market. It represents another milestone for mainstream NewsCapsule adoption in the region.
