In an announcement on June 20, ProShares will allow investors to profit from the Bitcoin drop with a new Bitcoin Short ETF. However, the product will come with the convenience of an ETF, avoiding the traditional challenges that are complex and quite expensive.
A short is a type of futures contract to sell a certain asset or commodity at a predetermined price, at some point in the future. ProShares’ new ETF will be listed under the ticker symbol BITI on the New York Stock Exchange NYSE, yielding an opposite performance to the CME Bitcoin Futures Index.
ProShares CEO Michael L. Sapir believes that recent market downturns have demonstrated the benefits an ETF based on “short selling” can provide clients. In addition, ProShares will also launch Short Bitcoin Strategy ProFund (BITIX) – a mutual fund with the same investment objective as BITI. Michael L. Sapir said:
“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.”
ProShares is known for launching the first Bitcoin ETF in the US based on futures contracts, reaching $1 billion in trading volume on the first day of launch, followed by many other Bitcoin derivatives ETFs that have been confirmed. The Securities and Exchange Commission (SEC) approved it, but so far no ETFs with direct exposure to Bitcoin has emerged.
The community has expressed frustration with the SEC’s reluctance to accept such a product. Typically, Will Clemente – leading insights analyst at Blockware states:
So all expectations are now focused on Grayscale – the largest crypto hedge fund in the world, which is trying to convert its product into an ETF. If the SEC denies the company’s subsequent application, CEO Michael Sonnenshein has threatened to sue the agency for unfair legal treatment.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Oklahoma crypto bill OKHB3594 safeguards residents' rights to use and self-custody digital assets, legalizes home…
Solana tops CoinGecko, boasting highest daily transactions per second (TPS). It outperforms Ethereum and Polygon,…
Bitcoin's correlation with mainstream assets, like tech stocks, is on the rise, fueled by optimism…
The Federal High Court in Abuja has denied bail to Tigran Gambaryan, a senior Binance…
Pavel Durov and Telegram has reportedly received the Notcoin donation of 1.03B tokens ($6.8M). Following…
A seasoned cryptocurrency expert has handpicked ten altcoins that could lead to substantial gains during…
This website uses cookies.