- ProShares will launch the primary Bitcoin brief ETF on Jun. 21.
- The ETF will enable buyers to hedge their crypto holdings or probably revenue from Bitcoin worth drops.
- Bitcoin is presently buying and selling 70% down from its all time excessive.
ProShares simply introduced the launch of a brand new Bitcoin futures ETF that may enable buyers to “conveniently” revenue from worth drops. The corporate was the primary to supply a Bitcoin futures ETF in October 2021.
ProShares Launches Brief Bitcoin ETF
ProShares is launching the primary Bitcoin brief ETF.
Based on a Monday press launch, the ProShares Brief Bitcoin Technique (BITI) will give buyers a mechanism to hedge their crypto publicity or revenue from Bitcoin worth drops. The ETF is designed to ship the other efficiency of the S&P CME Bitcoin Futures Index, and it’s set to launch on Jun. 21.
Shorting is a buying and selling technique that entails promoting an asset available on the market with the expectation of shopping for it at a cheaper price sooner or later. Traders “go brief” after they consider that an asset will fall in worth. In crypto buying and selling, those that are brief commerce on the expectation that Bitcoin might fall in worth.
“As current occasions have proven, Bitcoin can drop in worth,” ProShares CEO Michael Sapir mentioned within the press launch. Bitcoin is buying and selling at round $20,600 at press time, down about 70% from its $69,000 peak recorded in November 2021. Sapir mentioned that the ETF would assist buyers reap the benefits of Bitcoin’s worth volatility by letting them “conveniently” get hold of brief publicity.
ProShares will even launch a brief Bitcoin mutual fund (BITIX) on the identical day by way of its affiliated mutual fund firm, ProFunds. BITI and BITIX share the identical funding goal.
ProShares memorably launched the primary Bitcoin-based ETF within the U.S. in October 2021, letting buyers direct acquire publicity to the highest crypto by way of a standard inventory change for the primary time. Accessible beneath the ticker BITO, the agency’s Bitcoin futures ETF drew greater than $1 billion from buyers in its first two days.
Crucially, all of ProShares’ ETFs keep publicity to Bitcoin by way of futures contracts. The Securities and Trade Fee has thus far thwarted all efforts from varied firms to launch a Bitcoin spot ETF within the U.S. Crypto funding agency Grayscale is presently campaigning for the SEC to permit it to transform its Bitcoin personal belief (GBTC) into such a product, however the SEC has not but reached a choice.
Disclosure: On the time of writing, the writer of this piece owned ETH and several other different cryptocurrencies.