ProShares, the first company to launch a Bitcoin (BTC) futures exchange-traded fund (ETF), has announced that it will launch an ETF to allow investors to bet on the fall of the biggest cryptocurrency on the market.
The news comes after BTC recorded a decline of more than 30% in the last month, according to data from CoinGecko.
At the time of writing this article, Bitcoin is costing around $20,000. At the time ProShares launched a BTC futures ETF, the digital currency was priced at over $60,000. That is, triple the current price.
Bitcoin (BTC) price chart since October 2021. Source: CoinMarketCap
In practice, the ProShares Short Bitcoin Strategy ETF will give investors the opportunity to profit from further declines in the price of BTC or hedge their cryptocurrency exposure with the convenience of an ETF.
ProShares Short Bitcoin Strategy ETF
According to a company statement released on Monday (20), the product will be launched on Tuesday with the code BITI.
“As recent times have shown, Bitcoin could fall in value,” ProShares CEO Michael L. Sapir said in Monday’s announcement.
Sapir added that the product will allow investors to get short exposure to BTC through a traditional brokerage account.
Also according to the announcement, BITI is designed to provide the opposite of the performance of the S&P CME Bitcoin Futures Index. That is, the product seeks to gain exposure through Bitcoin futures contracts.
“For investors who prefer a mutual fund, ProFunds, the mutual fund company affiliated with ProShares, plans to launch the Short Bitcoin Strategy ProFund (BITIX) tomorrow [da 21/06]. The BITIX mutual fund will have the same investment objective as the BITI,” the statement said.
In October 2021, ProShares launched BITO, the first US ETF linked to Bitcoin.
As CriptoFácil reported at the time, the product attracted 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 that offer funds that allow investors to voice their opinion on Bitcoin’s direction. It doesn’t matter whether they believe the price will go up or down,” added Sapir.
It is worth noting that to date the US Securities and Exchange Commission, the SEC, has not approved a spot Bitcoin ETF. That is, an ETF linked to the current price of Bitcoin.
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