ProShares launches a short bitcoin ETF this week

Bitcoin coin lies on a screen showing the exchange rate bitcoin – US dollar.

Fernando Gutierrez Juarez photo union Getty Images

Eight months after the establishment of the first bitcoin futures ETF in the United StatesProShares plans to launch the first short ETF related to bitcoins on Tuesday in the United States, the provider of investment products announced on Monday.

The ProShares Short Bitcoin strategy, which will be traded on the New York Stock Exchange under the BITI ticker, is designed to give investors a way to profit from falling in the price of cryptocurrency. It will have a cost ratio of 0.95%.

bitcoin fell to a new low for 2022 over the weekend of $ 17,601.58, according to Coin Metrics, after six months of decline amid a wider sell-off of risky assets.

“As recent times have shown, bitcoin may fall in value,” ProShares CEO Michael Sapir said in a press release Monday. “BITI provides investors who believe that the price of bitcoin will fall with the possibility of potential profits or hedging of their cryptocurrencies. BITI allows investors to conveniently obtain a brief exposure to bitcoin by buying an ETF in a traditional brokerage account. ”

BITI will be the first ETF of its kind in US Horizons ETFs has a short bitcoin ETF listed on the Toronto Stock Exchange.

ProShares said BITI is designed to backfire on the S&P CME Bitcoin Futures Index and is seeking exposure through bitcoin futures.

It remains to be seen how timely the launch is. Markets remain uncertain as investors expect the next steps from the Federal Reserve and signs of peak inflation, but many still speculate that the crypto market is at or near the bottom.

On Monday, bitcoin reached about 70% of its highest level of all time, which reached in early November just weeks after ProShares launched the Bitcoin Strategy ETF (BITO). Bitcoin quickly turned down and has been falling ever since.

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