The company 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 an announcement made Monday, Exchange-traded fund issuer ProShares said its Short Bitcoin Strategy ETF would be available for trading on the New York Stock Exchange, or NYSE, beginning Tuesday under the symbol BITI. The vehicle will allow US investors to bet against Bitcoin (BTC) using futures contracts, given the cryptocurrency’s single-day performance as measured by the Chicago Mercantile Exchange’s Bitcoin Futures Index.
“BITI offers investors who believe the price of Bitcoin is going to fall an opportunity to potentially profit or hedge their cryptocurrency holdings,” ProShares CEO Michael Sapir said. “BITI allows investors to conveniently gain short exposure to Bitcoin through the purchase of an ETF in a traditional brokerage account.”
The launch of the investment vehicle will come amid a bear market for major cryptocurrencies, including Bitcoin and Ether (ETH). On Saturday, the price of BTC fell below $18,000 for the first time since 2020., but has since broken back above $20,000 at press time. The price of ETH saw a similar drop to below $1,000 on June 18, an 18-month low.
The first-ever Short Bitcoin ETF in the US begins trading on Tuesday. ProShares wins the race again. They whiffed on ticker tho. It’s $BITI zzzzz. should be $NGMI or $FUD or something. https://t.co/QXZRtlhTm3
– Eric Balchunas (@EricBalchunas) June 18, 2022
The first US short Bitcoin ETF begins trading on Tuesday. ProShares wins the race again. Although the ticker is not so attractive. It’s $BITI zzzzz. It should be $NGMI or $FUD or something like that
In 2021, ProShares launched its Bitcoin Strategy ETF on the New York Stock Exchange, offering one of the first investment vehicles to offer exposure to BTC futures in the United States. Opening at $40 per share on Oct. 18, shares of the ETF are down more than 68% to $12.72 at press time. In addition to BITI, ProShares affiliate ProFunds has announced that it will launch an investment fund vehicle aimed at shorting the price of BTC under the BITIX ticker.
Investors do not have access to US-listed spot Bitcoin ETFs due to the apparent reluctance of the Securities and Exchange Commission to approve an investment vehicle with direct exposure to the cryptocurrency.. However, the regulator has approved ETFs linked to BTC futures starting in 2021, including those from ProShares and Valkyrie.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.