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

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 a Monday announcement, exchange-traded fund issuer ProShares said its Short Bitcoin Strategy ETF would be available for trading on the New York Stock Exchange, or NYSE, starting Tuesday under the ticker BITI. The vehicle will allow U.S. investors to bet against Bitcoin (BTC) using futures contracts given the cryptocurrency’s performance in a single day, as measured by the Chicago Mercantile Exchange Bitcoin Futures Index.

“BITI affords investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings,” said ProShares CEO Michael Sapir. “BITI enables investors to conveniently obtain short exposure to Bitcoin through buying 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 BTC price dropped under $18,000 for the first time since 2020, but has since returned to more than $20,000 at the time of publication. The ETH price experienced a similar drop to under $1,000 on June 18 – an 18-month low.

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

Related: ProShares files with SEC for Short Bitcoin Strategy ETF

Investors do not have access to spot 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 approved ETFs linked to BTC futures starting in 2021, including those from ProShares and Valkyrie.

All Dutch and English crypto news!

Bitcoin markt zet zich schrap voor woensdag 6 juli

De komende twee weken worden spannend voor de bitcoin koers. Veel investeerders hebben 1 en 6 juli rood (of groen) omcirkeld in hun agenda. Op...

Compass Mining loses facility after allegedly failing to pay power bill

Bitcoin (BTC) mining hardware and hosting company Compass Mining has lost one of its Maine-based hosting facilities after the owner, Dynamics Mining, terminated the hosting...

Tether CTO refutes stablecoin FUD as short-sellers circle

Tether chief technology officer Paolo Ardoino has confirmed that the stablecoin has been the subject of a "coordinated attack" by hedge funds looking to short...

CoinFLEX recovery plan includes tokenized bad debt and more yields

Crypto investment platform CoinFLEX aims to rectify its liquidity shortage and restart user withdrawals by selling off bad debt through a new $47 million token...

Beste exchanges

Koop je crypto bij Bitvavo