- ProShares will launch the first bitcoin short ETF on June 21.
- The ETF will allow investors to hedge their crypto holdings or potential gains from declining bitcoin prices.
- Bitcoin is currently trading down 70% from its all-time high.
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ProShares has just announced the launch of a new bitcoin futures ETF that will allow investors to “easily” profit from falling prices. The company was the first to offer a bitcoin futures ETF in October 2021.
ProShares Launches Short Bitcoin ETF
ProShares is launching the first bitcoin short ETF.
According to Monday’s Press ReleaseThe ProShares Short Bitcoin Strategy (BITI) will provide a mechanism for investors to hedge their crypto exposure or gains from falling bitcoin prices. The ETF is designed to deliver the opposite performance of the S&P CME Bitcoin Futures Index, and is scheduled to launch on June 21.
Shorting is a trading strategy that involves selling an asset in the market with the expectation of buying it at a lower price in the future. Investors “go short” when they believe an asset will fall in value. In crypto trading, those who trade short on the expectation that the price of bitcoin may fall.
“Bitcoin is likely to fall in value as it has been shown in recent days,” ProShares CEO Michael Sapir said in a press release. bitcoin is Business At about $20,600 at press time, down about 70% from its November 2021 peak of $69,000. Sapir said the ETF will help investors take advantage of bitcoin’s price volatility by allowing investors to “easily” gain access to less exposure.
ProShares will also launch a small bitcoin mutual fund (BITIX) on the same day through its affiliated mutual fund company, ProFunds. BITI and BITIX share the same investment objective.
ProShares memorably launched the first bitcoin-based ETF in the US in October 2021, giving investors direct exposure to top crypto through a traditional stock exchange for the first time. Available under the ticker BITO, the firm’s bitcoin futures ETF garnered more than $1 billion from investors in its first two days.
Importantly, all ETFs in ProShares remain exposed to bitcoin through futures contracts. The Securities and Exchange Commission has thwarted all attempts by various companies to launch a bitcoin spot ETF in US crypto investment firm Grayscale. Election Campaign to allow the SEC to convert its Bitcoin Private Trust (GBTC) to such a product, but the SEC has yet to reach a decision.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.