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

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The company behind one of the first exchange-traded funds linked to bitcoin futures in the United States will give investors a new way to bet on the price of the cryptocurrency.

In an announcement on Monday, exchange-traded funds issuer ProShares said that the Bitcoin ETF short strategy will be available for trading on the New York Stock Exchange, or NYSE, starting Tuesday under the BITI ticker. The vehicle will allow US investors to bet against Bitcoin (BTC) using futures contracts, given the cryptocurrency’s one-day performance according to the Chicago Mercantile Exchange futures index.

“BITI offers investors who believe that the price of bitcoin will fall with a potential opportunity to profit or hedge their crypto holdings,” said Michael Sapir, CEO of ProShares. “BITI allows investors to easily get short exposure to Bitcoin by purchasing an ETF in a traditional brokerage account.”

The launch of the investment tool will come amid a bear market for major cryptocurrencies including Bitcoin and Ether (ETH). On Saturday, the price of BTC fell below $18,000 for the first time since 2020 but has since returned to over $20,000 at press time. ETH price saw a similar drop below $1,000 on June 18 – an 18-month low.

In 2021, ProShares launched a Bitcoin Strategy ETF on the New York Stock Exchange, offering one of the first investment vehicles to offer Bitcoin futures in the US. Opening at $40 per share on October 18, the ETF shares are down more than 68% to $12.72 at press time. In addition to BITI, ProShares affiliate ProFunds has announced that it will launch a mutual fund instrument aimed at lowering the price of BTC under the BITIX index.

Related: ProShares Files with SEC for Short Bitcoin Strategy ETF

Investors do not have access to US-listed Bitcoin ETFs due to the Securities and Exchange Commission’s reluctance to approve an investment vehicle with direct exposure to the cryptocurrency. However, the regulator has approved ETFs linked to bitcoin futures starting in 2021, including those from ProShares and Valkyrie.

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