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

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The firm behind one of the first bitcoin futures-linked exchange-traded funds in the United States will give investors a new vehicle to bet against the price of the cryptocurrency.

In Monday’s announcement, exchange-traded fund issuer ProShares said that its short bitcoin strategy ETF will be available for trading on the New York Stock Exchange or NYSE under the ticker BITI starting Tuesday. The vehicle will allow US investors to bet against bitcoin (BTC) using futures contracts, tracking the performance of the cryptocurrency in one day as measured by the Chicago Mercantile Exchange Bitcoin Futures Index.

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ProShares CEO Michael Sapir said, “BITI provides investors who believe the price of bitcoin will fall with a potential profit or opportunity to hedge their cryptocurrency holdings.” “BITI enables investors to easily obtain low exposure to bitcoin by purchasing an ETF in a traditional brokerage account.”

The launch of the investment vehicle will take place in the midst of a bear market for major cryptocurrencies including bitcoin and ether (ETH). On Saturday, the price of BTC dipped below $18,000 for the first time since 2020, but crossed $20,000 at the time of publication. ETH price traded below $1,000 with a similar decline on June 18 – an 18-month low.

In 2021, ProShares launched its Bitcoin Strategy ETF on the NYSE, one of the first investment vehicles to offer exposure to BTC futures in the United States. Opening October 18 at $40 per share, the ETF’s shares fell more than 68% to $12.72 at the time of publication. In addition to BITI, ProShares-affiliated company ProFunds announced that it will launch a mutual fund vehicle aimed at lowering the price of BTC under the BITIX ticker.

related: ProShares files with SEC for Short Bitcoin Strategy ETF

Investors do not have access to bitcoin ETFs listed in the United States due to the Securities and Exchange Commission’s seeming reluctance to approve an investment vehicle with direct exposure to the cryptocurrency. However, the regulatory body has approved ETFs linked to BTC futures, including ProShares and Valkyrie, starting in 2021.