ProShares, the pioneering US-based Bitcoin ETF provider, has announced that it will launch the country’s first Bitcoin Short ETF. This will allow investors to “short” BTC.
In an announcement on June 20, ProShares will allow investors to profit from the Bitcoin drop with a new Bitcoin Short ETF. However, the product will come with the convenience of an ETF, avoiding the traditional challenges that are complex and quite expensive.
A short is a type of futures contract to sell a certain asset or commodity at a predetermined price, at some point in the future. ProShares’ new ETF will be listed under the ticker symbol BITI on the New York Stock Exchange NYSE, yielding an opposite performance to the CME Bitcoin Futures Index.
ProShares CEO Michael L. Sapir believes that recent market downturns have demonstrated the benefits an ETF based on “short selling” can provide clients. In addition, ProShares will also launch Short Bitcoin Strategy ProFund (BITIX) – a mutual fund with the same investment objective as BITI. Michael L. Sapir said:
“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.”
ProShares is known for launching the first Bitcoin ETF in the US based on futures contracts, reaching $1 billion in trading volume on the first day of launch, followed by many other Bitcoin derivatives ETFs that have been confirmed. The Securities and Exchange Commission (SEC) approved it, but so far no ETFs with direct exposure to Bitcoin has emerged.
The community has expressed frustration with the SEC’s reluctance to accept such a product. Typically, Will Clemente – leading insights analyst at Blockware states:
So all expectations are now focused on Grayscale – the largest crypto hedge fund in the world, which is trying to convert its product into an ETF. If the SEC denies the company’s subsequent application, CEO Michael Sonnenshein has threatened to sue the agency for unfair legal treatment.
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