ProShares’ Bitcoin Short ETF (BITI) rose 306% last week, firmly cementing its place as the second-largest bitcoin ETF in the United States.
BITI now has the equivalent of 3,811 BTC in net short exposure, up from just 937 BTC on June 27. mysterious research, Most of the new inflows arrived on June 29th and June 30th, 1684 BTC and 700 BTC respectively.
Finance launched On June 21 and within just two days it became the country’s second-largest bitcoin ETF, surpassing another ProShares investment vehicle, the Bitcoin Strategy ETF (BITO), which holds more than 32,000 BTC, per arcana. information,
An ETF, or exchange-traded fund, provides investors with indirect exposure to an underlying asset. This can be useful when investing in commodities or cryptocurrencies, which may be difficult to transfer or store.
So far, the only bitcoin ETF products approved in the US are futures-based. This means they are backed by futures contracts – cash-settled bets of the bitcoin price at a later date rather than current prices.
BITO was the first such product to be launched in the country, which made it extremely popular among investors. However, BITI is structured differently: its performance is in contrast to the S&P CME Bitcoin Futures Index. In other words, investors profit when the price of bitcoin falls.
Given that BITI is barely over 10% of the size of BITO, this could mean that ETF investors still prefer long-term investments in BTC. Furthermore, Arcane explained last week that the long-term exposure to BITI is virtually disabling.
It must be said that long term short exposure through BITI is inefficient.
The fund seeks returns of -1 times the benchmark (BTC) for a day, and the compounding effect will lead to underperformance versus the index during upside volatility. pic.twitter.com/W2BFQeQdrv
A spot-based bitcoin ETF product backed by real bitcoin has been consistently rejected by the Securities and Exchange Commission. The regulator is now being sued by scale Both have been approved in several other countries, thanks to their reluctance to apply the same treatment to spot- and futures-based funds.
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