ProShares launches a new ETF that allows investors to bet on the fall of Bitcoin – DiarioBitcoin

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ProShares launches a new ETF that allows investors to bet on the fall of Bitcoin - DiarioBitcoin By Hannah Perez

The new short Bitcoin ETF will be the first of its kind in the United States. It is expected to be released tomorrow Tuesday on the NYSE.

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  • ProShares launches a short Bitcoin ETF.
  • It will allow investors to benefit from the fall in the price of BTC.
  • It will begin trading on the NYSE on Tuesday.

The provider of investment products, Pro Sharesis launching a new exchange-traded fund (ETF) in the United States that will allow investors to bet on the decline of Bitcoin.

The company announced in a Monday’s statement about the new ETF called ProShares Short Bitcoin Strategy (BITI), designed to offer inverse performance of Bitcoin. The investment vehicle will provide investors with the opportunity to benefit from a fall in the price of Bitcoinor to hedge their exposure to cryptocurrencies, according to the statement.

As recent times have shown, the value of Bitcoin can fallsaid the executive director of Pro SharesMichael L. Sapir, in the publication. BITI provides investors who believe the price of Bitcoin will fall with an opportunity to make potential profits or hedge their cryptocurrency holdings.”.

According to the ad, BITI will aim to deliver the opposite performance of the S&P CME Bitcoin Futures Index. You will gain exposure through futures contracts on Bitcoin.

The new ETF of Pro Shares is scheduled to begin trading on the New York Stock Exchange (NYSE) this Tuesday, June 21, once the markets reopen after the June 16 holiday. The company highlighted that it will be the first ETF of its kind in the US market.

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Opportune time for the new ETF

The arrival of the new investment product could not come at a more opportune time. In the last weeks, Bitcoin and the rest of the cryptocurrency market has been subtracting gains from the past two years amid a steep decline.

Over the weekend, the flagship cryptocurrency lost its $20,000 level, well below its all-time high near $69,000 it saw in November of last year. The bearish picture extends, with the global cryptocurrency capitalization sinking below $1 trillion from $3 trillion at the end of 2021.

The new ETF of Pro Shares could prove attractive amid price collapse. Pro Shares was the first in the US to issue a product of its kind linked to futures Bitcoin in October of last year. At the time, the trade attracted more than $1 billion in assets from the public in just two days, making it the most successful launch in ETF history.

Following that success, the provider is now betting with an ETF of Bitcoin in short, a product that already exists in the European and Canadian markets. Meanwhile, investors in the United States are still waiting for the launch of a first ETF of Bitcoin cash (or physical), something that the country’s regulators have not yet approved despite the insistence of several companies in the sector.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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