ProShares, an exchange-traded fund (ETF) supplier, as we speak announced a brand new product that may enable traders to guess towards Bitcoin—a U.S. first.
The ProShares Short Bitcoin Strategy ETF, slated to start buying and selling underneath BITI on the New York Stock Exchange on Tuesday, supplies a possibility to revenue if the value of the world’s greatest digital asset declines.
Short promoting is an funding technique that speculates on an asset falling in worth, in contrast with extra conventional bets on potential will increase amongst shares, bonds, or cryptocurrencies. An ETF is an investment product that enables traders to purchase shares that characterize an asset.
“As recent times have shown, Bitcoin can drop in value,” ProShares CEO Michael L. Sapir mentioned an announcement. “BITI affords investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings.”
Investors, he added, can “conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account.”
The launch of the ETF comes at a time when Bitcoin—and all the cryptomarket—has plummeted. At the time of this writing, Bitcoin was buying and selling for $20,306.37, according to CoinMarketCap. Last November, it hit an all-time excessive of $68,789.63.
BITI supposedly delivers the inverse of the efficiency of the S&P CME Bitcoin Futures Index, and it’ll acquire publicity via Bitcoin futures contracts.
Bitcoin ETFs that observe the value of cryptocurrencies are in style within the U.S. as a result of the SEC has been sluggish to approve a spot Bitcoin ETF product.
In October, the SEC lastly authorised the primary Bitcoin futures ETF—one other ProShares product.
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