Alternative Investments/Digital: The First Inverse Bitcoin Fund From Horizons ETF Canada
The BetaPro Inverse Bitcoin ETF commenced trading Thursday on the Toronto Stock Exchange.
Horizons ETFs Management (Canada) Inc announced the launch of the BetaPro Inverse Bitcoin ETF (TSE: BITI) on the Toronto Stock Exchange effective Thursday.
The ETF will allow investors to make bearish bets against bitcoin, the leading cryptocurrency. It will provide up to 100% of the inverse daily performance of an index, the Horizons Bitcoin Front Month Rolling Futures Index. (CISION CANADA)
This is a proprietary index provided by Horizons ETFs designed to reflect the returns generated over time through exposure to long notional investments in bitcoin futures that are based on the CME CF Bitcoin Reference Rate.
The fund charges a management fee of 1.45%.
Volatile asset class
Horizons ETF also simultaneously launched the BetaPro Bitcoin ETF (TSE: HBIT), which provides long exposure to the Horizons Bitcoin Front Month Rolling Futures Index.
“There is a lot of interest in bitcoin in the last year, but it is an asset class that has historically been very volatile and complex for investors to get access to, especially when compared to buying ETFs. HBIT and BITI provide ETF options with daily liquidity that allows investors to take either a long or short position on the asset class,” said Steve Hawkins, President and CEO of Horizons ETFs. “Buying HBIT and BITI is as easy as buying any stock or other ETF through a broker, and doesn’t require investors to open up separate cryptocurrency accounts. Additionally, BITI will offer a way for investors to achieve ‘short’ exposure to bitcoin without having to use a margin account or shorting futures directly.”
Horizons ETFs: The long and short of it
“We know that there are polarizing views on bitcoin and as a result, there are investors with a high degree of conviction on both the bullish and bearish cases for the asset class,” said Hawkins.
“In launching HBIT and BITI, our goal is to provide investment tools that allow investors to get liquid access to the returns of bitcoin futures with the ability to go long or short the asset class, based on their outlook and conviction.”
Canada takes the lead…again
Canada has gone ahead and allowed even an inverse bitcoin ETF. It green-lighted bitcoin ETFs earlier this year.
Ironically, in the U.S. the SEC is plodding through, at last count, nine applications for the launch of a bitcoin ETF.
Since 2013, the SEC has rejected all such applications, on suspected grounds of manipulation and criminal activity.
Latest Alternative Investment News
Jeremiah Gordon is General Counsel at CapitalG, Alphabet’s (NASDAQ: GOOGL) independent growth fund which has $3 billion under management. He also leads an Alphabet-wide team focused on investing in Black-led…
Though initial reports said that Colonial Pipeline would not pay a ransom to the hackers that brought the nation’s largest fuel pipeline to a halt, Bloomberg reported Thursday that the…
Artificial Intelligence: A Molecule For Alzheimer’s Created By Exscientia’s AI Enters Clinical Trials
Oxford, UK-based Exscientia uses AI to design and create drug candidate molecules satisfying complex therapeutic requirements with revolutionary efficiency. Joint research by Exscientia with Sumitomo Dainippon Pharma Co., Ltd. (TYO:…
Vinted, a European startup that runs a marketplace for used clothing and home goods, announced its raise of $303 million at a valuation of $4.5 billion, post-money. That valuation is…