Alternative Investments/Digital: ProShares Will Debut A Short Bitcoin ETF This Week
Bitcoin has already lost about 70% from its all time high of $68,789 touched in November 2021. But as they say – better late than never.
ProShares is likely to launch the first US short bitcoin ETF, the ProShares Short Bitcoin Strategy, on Tuesday, allowing investors to take a punt on a decline in the price of the leading cryptocurrency. However, bitcoin has already crashed 70% since November 2021, and over the weekend, plumbed a new 2022 low of $17,601.58 before clawing back to a level above $20,000. (CNBC)
ProShares launched the first US futures linked bitcoin ETF (NYSEARCA: BITO) in October 2021. Despite multiple applications, the SEC has refused to clear a spot bitcoin ETF. The new short bitcoin ETF will debut on the New York Stock Exchange under the ticker symbol of BITI, and will charge an expense ratio of 0.95%.
ProShares Short Bitcoin ETF: Profit from, or hedge against a decline in BTC
“As recent times have shown, bitcoin can drop in value,” ProShares CEO Michael Sapir said in a news release Monday. “BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings. BITI enables investors to conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account.”
BITI will invest in bitcoin futures contracts that will appreciate when the price of bitcoin falls. The strategy will deliver the inverse of the performance of the S&P CME Bitcoin Futures Index.
Meanwhile, a short bitcoin by Horizons ETF, the BetaPro Inverse Bitcoin ETF (TSE: BITI), trades on the Toronto Stock Exchange.
Year-to-date, it is up nearly 84%, reflecting the crash in bitcoin.
Related Story: ProShares Proposes Inverse Bitcoin ETF
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