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ProShares will launch ETF geared toward shorting Bitcoin following dip beneath $20K

ProShares will launch ETF geared toward shorting Bitcoin following dip beneath $20K thumbnail
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The agency behind one of many first Bitcoin futures-linked exchange-traded funds within the United States will give traders a brand new automobile to guess in opposition to the worth of the cryptocurrency.

In a Monday announcement, exchange-traded fund issuer ProShares mentioned its Short Bitcoin Strategy ETF can be accessible for buying and selling on the New York Stock Exchange, or NYSE, beginning Tuesday beneath the ticker BITI. The automobile will permit U.S. traders to guess in opposition to Bitcoin (BTC) utilizing futures contracts, given the cryptocurrency’s efficiency in a single day as measured by the Chicago Mercantile Exchange Bitcoin Futures Index.

“BITI affords traders who consider that the worth of Bitcoin will drop with a chance to probably revenue or to hedge their cryptocurrency holdings,” mentioned ProShares CEO Michael Sapir. “BITI permits traders to conveniently receive brief publicity to Bitcoin via shopping for an ETF in a conventional brokerage account.”

The launch of the funding automobile will come amid a bear marketplace for main cryptocurrencies together with Bitcoin and Ether (ETH). On Saturday, the BTC value dropped beneath $18,000 for the primary time since 2020 however has since returned to greater than $20,000 on the time of publication. The ETH value skilled an analogous drop to beneath $1,000 on June 18 — an 18-month low.

In 2021, ProShares launched its Bitcoin Strategy ETF on the NYSE, providing one of many first funding autos providing publicity to BTC futures within the United States. Opening at $40 per share on October 18, shares of the ETF have fallen greater than 68% to succeed in $12.72 on the time of publication. In addition to BITI, ProShares-affiliated firm ProFunds introduced it will likely be launching a mutual fund automobile geared toward shorting the BTC value beneath the ticker BITIX.

Related: ProShares recordsdata with SEC for Short Bitcoin Strategy ETF

Investors don’t have entry to identify Bitcoin ETFs listed within the United States as a result of Securities and Exchange Commission’s seeming reluctance to approve an funding automobile with direct publicity to the cryptocurrency. However, the regulatory physique authorized ETFs linked to BTC futures beginning in 2021, together with these from ProShares and Valkyrie.

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