Asia's first single-stock leveraged and inverse ETFs, launched on March 24 on the Hong Kong Stock Exchange ( HKEX ), have seen a significant surge in investor demand following a slow initial uptake, with trading volumes and turnover rapidly increasing. 

Tesla 2x Inverse ETF launched by CSOP Asset Management, for example, traded at an eye-popping 280,000 units per day or a daily turnover of HK$15.3 million ( US$1.95 million ), for a turnover ratio of 104% over the last three months, HKEX data show.

In the past week alone, the daily trading volumes for this ETF fluctuated in a range of 45,000 to almost 200,000 units, or an average of around 136,000 units. Such volumes indicate intense demand, considering that almost the entire float turns over each day.

The MicroStrategy ( -2x ) leveraged and inverse ETF posted an average volume of 88,000 per day and a turnover ratio of 44% over the same period. In the past week, the average daily volume reached 49,075 units. The ETF averages a healthy 50,000 units per day, indicating consistent liquidity.

The CSOP Coinbase ( -2x ), which is not an ETF but a leveraged and inverse product, saw a turnover ratio of 27% and an average volume of 40,000 per day, although trading has slowed to a daily volume of 3,000 with a total turnover of HK$74,730 in the past six days.        

Although such volume is substantially lower than that of more active names like the Tesla ETF L&I ETF, it still suggests continuing investor interest in leveraged and inverse products.

All this has fuelled interest in exchange-traded products ( ETPs ) in general. The average daily trading turnover of all ETPs on the HKEX reached HK$36 billion in Q1 2025, up 89% from a year ago, driven partly by the listing of single-stock L&Is in March.

In a statement, CSOP chief executive officer Ding Chen says the broader leveraged/inverse ETF universe within his organization has reached about US$3.5 billion in average daily turnover, with four to five leveraged products ranking in the top 10 most‑traded ETFs.

Among the drivers cited for the huge interest in single-stock L&Is is the first-mover advantage, providing the company with early institutional and retail investor uptake.

Investors are also attracted to the tighter spreads brought about by various factors, including improved market-maker incentives from HKEX, increased trading volume and liquidity, availability of multiple trading currencies, the relatively efficient structure and transparency of the L&I ETFs and products available on the HKEX, and technology-enabled trading through online brokers.