A recently published press release shows that the new Bitcoin futures ETF (BITI) has traded more than 870,000 shares on the second day after it was launched by ProShares.
Shorting Bitcoin among American investors
Local investors now have the option to short BTC, the leading cryptocurrency, thanks to ProShares, the largest top-tier ETF provider in the United States. The business introduced a short BTC futures ETF with the symbol BITI earlier this week. It was the first ETF in the US to support betting on a drop in the price of BTC.
Investors appear to have jumped at the possibility since it showed a significant trading volume on the second day of trading, estimated at about $35 million and climbing by 380%.
Michael L. Sapir, the chief of ProShares, came to that decision and stated it in the press release. He claimed that there is strong demand for an easy-to-use, reasonably priced exchange-traded fund that investors may take advantage of when the price of BTC declines.
The same company, ProShares, introduced the first ETF for BTC futures that permitted longing BTC in October 2021. It was denoted by the ticker BITO. With the introduction of a short BTC ETF, traders can now profit from changes in the price of BTC in both directions.
According to Grayscale CEO Sonnenshein, the establishment of BITI is encouraging since it demonstrates that the U.S. SEC regulatory body is steadily reforming and warming up to BTC and other cryptocurrencies.
How BITI facilitates Bitcoin shorting
Since centralized crypto exchanges typically impose various restrictions on opening short positions on spot BTC, making it exceedingly expensive among other things—between 5 and 20% —the new ETF enables shorting Bitcoin easier. It is much less expensive with BITI.
For individuals who would prefer to trade utilizing a mutual fund, ProFunds, a ProShares associated organization, has now introduced a new Short Bitcoin Strategy ProFund (BITIX).
“$220,000 still in play” according to Max Keiser
Max Keiser, a well-known Bitcoin maximalist, still believes that Bitcoin has a chance to reach the $220,000 level this year, but it’s hard to believe after the flagship digital currency crashed to the $19,000 level and is currently holding near $20,000 without further gains.
According to Keiser, the main cause of this is that the total number of Bitcoins is rigidly limited to 21 million, more than 18 million of which have already been mined and over 3 million of which have been lost permanently, increasing the perceived scarcity of BTC.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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