Good news for those enjoying the bitcoin crash. New York Stock Exchange investors can now buy an exchange-traded fund by shorting Bitcoin.
ProShares, provider of bitcoin-pegged ETFs, will debut the first ETF that allows investors to bet on the fall of the world’s largest cryptocurrency. It is scheduled to be listed on the New York Stock Exchange (NYSE) on Tuesday, June 21, under the ticker BITI.
The company became the first to launch a bitcoin futures ETF – coinciding with the cryptocurrency’s record $68,900 price tag.
The ProShares Short Bitcoin Strategy (BITI), designed to provide the inverse of bitcoin’s performance, will begin trading on the New York Stock Exchange (NYSE) on Tuesday, ProShares announced Monday.
The ETF allows investors to hedge their exposure to bitcoin, which may be particularly relevant given the sharp decline in cryptocurrencies in recent days.
According to a press release, the ProShares Short Bitcoin Strategy ETF provides a way for investors to potentially profit from a decline in bitcoin price or hedge their cryptocurrency exposure with the convenience of an ETF.
“As recent time has shown, bitcoin may fall in value”said ProShares CEO Michael L. Sapir. “BITI offers investors who believe the price of bitcoin will fall the opportunity to potentially profit from or protect their cryptocurrency holdings. With BITI, investors can easily get a short exposure to bitcoin by buying an ETF in a traditional brokerage account.
The launch of the ETF issued by the company comes at a time when bitcoin and the entire cryptocurrency market is in a slump. Bitcoin is trading at $21,058 at the time of writing, according to CoinMarketCap.
Bitcoin, which hit an all-time high in November last year, has fallen about 70% from its price.
ProShares
In October 2021, ProShares launched BITO, the first North American ETF pegged to bitcoin, pulling more than $1 billion in assets from the public in just two days. This made it the most successful launch in the history of the ETF industry. ProFunds launched the first bitcoin-linked mutual fund, BTCFX, in July 2021.
“With the additions of BITI and BITIX, ProShares and ProFunds will be the only fund families in the US to offer funds that allow investors to express their views on bitcoin’s direction – whether they think the price will go up or down.” added Sapir.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
