The ProShares exchange-traded fund will offer investors a new financial tool for betting against the cryptocurrency’s price.
U.S. investors will be able to bet against BTC using futures contracts, calculating Bitcoin’s 24-hour performance as measured by the CME Bitcoin Futures Index.
The Short Bitcoin Strategy ETF will be available for trading on the New York Stock Exchange (NYSE) beginning Tuesday under the ticker BITI.
ProShares CEO Michael Sapir said, “BITI gives investors who believe the price of bitcoin will fall the opportunity to take potential profits or hedge their cryptocurrency holdings. BITI allows investors to conveniently short bitcoin positions by buying ETFs in a traditional brokerage account “
Against the backdrop of the global downturn in major cryptocurrencies, this tool will come in handy for investors. The price of Bitcoin fell below $18,000 on Saturday, recording an almost two-year low; at the time of writing, it has risen back to just above $20,000. The second-largest cryptocurrency, Ethereum, also fell to its 18-month low of less than $1,000 on Saturday.
Pro Shares was the first firm to launch an exchange-traded fund with BTC futures in the U.S. on NYSE Arca under the ticker BITO. The SEC has approved instruments related to bitcoin futures beginning in 2021 .
ProFunds, an affiliate of ProShares, will also launch a mutual fund mechanism aimed at reducing the price of BTC under the ticker BITIX.
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