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OSL CFO: Reverse ETFs Have Significant Potential During Volatility in Digital Asset Markets

Global stock markets have tumbled this week, and cryptocurrencies have also seen a wash-out plunge. Industry experts believe that anti-ETFs can help investors manage risk in market volatility, and more related products are expected to be launched in the market. Hu Zhenbang, chief financial officer of OSL, said that reverse ETFs have significant potential in the digital asset market because they can be used as risk management tools to help investors cushion losses when the market fluctuates. In fact, to make the digital asset ETF market achieve faster and more stable development, more and richer derivative products need to be developed, so as to meet the needs of various types of investors and provide them with a comprehensive and diversified portfolio strategy. However, Hu Zhenbang believes that since there are no regulated digital asset derivatives in Hong Kong. If Hong Kong issuers want to develop such products, they may need to rely on instruments listed on overseas exchanges, such as bitcoin futures contracts offered by the Chicago Mercantile Exchange (CME). This means that investors in the Hong Kong market use instruments from overseas markets to implement their investment strategies, which adds to the complexity and cost of trading to some extent.