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Tuesday, January 31, 2023

ProShares will launch ETF aimed at shorting Bitcoin following dip under $20K

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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 towards the value of the cryptocurrency.

In a Monday announcement, exchange-traded fund issuer ProShares said its Short Bitcoin Strategy ETF can be accessible for buying and selling on the New York Stock Exchange, or NYSE, beginning Tuesday under the ticker BITI. The automobile will enable U.S. traders to guess towards 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 investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings,” mentioned ProShares CEO Michael Sapir. “BITI enables investors to conveniently obtain short exposure to Bitcoin through buying an ETF in a traditional 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 under $18,000 for the primary time since 2020 however has since returned to greater than $20,000 at the time of publication. The ETH value experienced a similar drop to under $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 automobiles 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 achieve $12.72 at the time of publication. In addition to BITI, ProShares-affiliated firm ProFunds introduced it will be launching a mutual fund automobile aimed at shorting the BTC price under the ticker BITIX.

Related: ProShares files with SEC for Short Bitcoin Strategy ETF

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