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ProShares to launch first short bitcoin-linked ETF

written by Bella Palmer

The ProShares Short Bitcoin Strategy is designed to give investors a way to profit from declines in the price of the cryptocurrency

Eight months after establishing the first U.S. bitcoin futures ETF (Exchange-traded fund), ProShares plans to launch the first short bitcoin-linked ETF on Tuesday in the U.S., the provider of investment products announced Monday.

The ProShares Short Bitcoin Strategy, which will trade on the New York Stock Exchange (NYSE) under the ticker BITI, is designed to give investors a way to profit from declines in the price of the cryptocurrency. It will have an expense ratio of 0.95 per cent.

Bitcoin fell to new 2022 low over the weekend of $17,601.58, according to Coin Metrics, after six months of declines amid the broader sell-off in risk assets.

As recent times have shown, bitcoin can drop in value, ProShares CEO Michael Sapir said in a news release Monday.

BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings. BITI enables investors to conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account, he said.

BITI will be the first Exchange-traded fund of its kind in the U.S. Horizons ETFs has a short bitcoin Exchange-traded fund listed on the Toronto Stock Exchange (TSX).

ProShares said BITI is designed to deliver the opposite of the performance of the S&P CME Bitcoin Futures Index and that it seeks to obtain exposure through bitcoin futures contracts.

On Monday, bitcoin sat about 70 per cent from its all-time high, which it hit in early November just a couple weeks after ProShares launched the Bitcoin Strategy ETF (BITO). Bitcoin quickly reversed lower, and has been falling since then.


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