The drop in the bitcoin price has pushed investors up to 380% using the recently launched BITI ETF.
A recently published press release shows that the new Bitcoin Futures ETF (BITI) has traded over 870,000 shares on the second day of its launch by ProShares.
US investors are shorting bitcoin
ProShares, the largest top-tier provider of ETFs in the US, is now offering local investors the opportunity to short the flagship cryptocurrency, bitcoin. Earlier this week, the company launched a small bitcoin futures ETF with the BITI ticker. It was the first ETF in the US to allow bets on falling bitcoin prices.
ProShares, a provider of ETFs in the United States and the largest provider of bitcoin-linked ETFs*, today announced that its new Short Bitcoin Strategy Fund (BITI) traded more than 870,000 shares, or $35 million worth, on its second day. Business. https://t.co/tIVnT5ACEZ
— Wu Blockchain (@WuBlockchain) 23 June 2022
Investors seem to have happily capitalized on this opportunity, as on the second day of trading, it reported higher trading volume, valuing around $35 million thus increasing by 380 percent.
ProShares head Michael L. Sapir has come to that conclusion stating this in the press release. He said he saw confirmation of the high demand for a convenient and low-cost exchange-traded fund to profit from when the BTC price fell.
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In October 2021, the same company, ProShares, issued the first ETF for bitcoin futures, which allowed BTC cravings under the ticker BITO. Now, with the launch of a short BTC ETF, traders can profit from the volatility of the bitcoin price in both directions.
Grayscale CEO Sonnenshin believes that the establishment of BITI is a good sign as it shows that the US SEC regulatory agency is slowly changing its approach to bitcoin and crypto, and warming to them.
How BITI Makes Shorting Bitcoin Easier
The new ETF makes shorting bitcoin an easy task as centralized crypto exchanges usually impose various restrictions on opening short positions on spot BTC, making it very expensive – ranging from 5 to 20% among everything else. With BITI, it’s much cheaper.
ProFunds, a ProShares affiliate company, has also launched a new short bitcoin strategy ProFund (BITIX) for those who would prefer to trade using mutual funds.
Max Keizer believes “$220,000 still in trend”
Prominent bitcoin maximalist Max Keizer still believes that bitcoin has a chance to hit the $220,000 level this year, which seems very hard to believe now that the major digital currency has dropped to the $19,000 level and, a minor After recovery, it is near $20,000. – Still unable to get up.
According to Keyser, the major reason for this is the supply of bitcoins which is strictly limited to 21 million, where more than 18 million coins have already been minted and about 3 million of them are lost forever, as do many people. Admittedly, that makes BTC even more scarce.
