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

The agency behind one of many first Bitcoin futures-linked exchange-traded funds in america will give buyers a brand new automobile to guess in opposition to the worth of the cryptocurrency.

In a Monday announcement, exchange-traded fund issuer ProShares mentioned its Brief Bitcoin Technique ETF could be out there for buying and selling on the New York Inventory Trade, or NYSE, beginning Tuesday underneath the ticker BITI. The automobile will permit U.S. buyers to guess in opposition to Bitcoin (BTC) utilizing futures contracts, given the cryptocurrency’s efficiency in a single day as measured by the Chicago Mercantile Trade Bitcoin Futures Index.

“BITI affords buyers who imagine that the worth of Bitcoin will drop with a possibility to probably revenue or to hedge their cryptocurrency holdings,” mentioned ProShares CEO Michael Sapir. “BITI permits buyers to conveniently get hold of brief publicity to Bitcoin by means of shopping for an ETF in a standard brokerage account.”

The launch of the funding automobile will come amid a bear marketplace for main cryptocurrencies together with Bitcoin and Ether (ETH). On Saturday, the BTC value dropped underneath $18,000 for the primary time since 2020 however has since returned to greater than $20,000 on the time of publication. The ETH value skilled an identical drop to underneath $1,000 on June 18 — an 18-month low.

In 2021, ProShares launched its Bitcoin Technique ETF on the NYSE, providing one of many first funding autos providing publicity to BTC futures in america. Opening at $40 per share on October 18, shares of the ETF have fallen greater than 68% to succeed in $12.72 on the time of publication. Along with BITI, ProShares-affiliated firm ProFunds introduced it will likely be launching a mutual fund automobile aimed toward shorting the BTC value underneath the ticker BITIX.

Associated: ProShares recordsdata with SEC for Brief Bitcoin Technique ETF

Buyers wouldn’t have entry to identify Bitcoin ETFs listed in america because of the Securities and Trade Fee’s seeming reluctance to approve an funding automobile with direct publicity to the cryptocurrency. Nevertheless, the regulatory physique authorised ETFs linked to BTC futures beginning in 2021, together with these from ProShares and Valkyrie.