The agency behind one of many first Bitcoin futures-linked exchange-traded funds within the United States will give buyers a brand new car to guess in opposition to the worth of the cryptocurrency.
In a Monday announcement, exchange-traded fund issuer ProShares said its Short Bitcoin Strategy ETF could be out there for buying and selling on the New York Stock Exchange, or NYSE, beginning Tuesday under the ticker BITI. The car will enable U.S. buyers to guess in opposition to Bitcoin (BTC) utilizing futures contracts, given the cryptocurrency’s efficiency in a single day as measured by the Chicago Mercantile Exchange Bitcoin Futures Index.
“BITI affords buyers who consider that the worth of Bitcoin will drop with a chance to probably revenue or to hedge their cryptocurrency holdings,” stated ProShares CEO Michael Sapir. “BITI allows buyers to conveniently get hold of brief publicity to Bitcoin by shopping for an ETF in a standard brokerage account.”
The launch of the funding car will come amid a bear marketplace for main cryptocurrencies together with Bitcoin and Ether (ETH). On Saturday, the BTC worth dropped under $18,000 for the primary time since 2020 however has since returned to greater than $20,000 at the time of publication. The ETH worth skilled an identical drop to under $1,000 on June 18 — an 18-month low.
The first-ever Short Bitcoin ETF within the U.S. begins buying and selling on Tuesday. ProShares wins the race once more. They whiffed on ticker tho. It’s $BITI zzzzz. Should be $NGMI or $FUD or one thing. https://t.co/QXZRtlhTm3
— Eric Balchunas (@EricBalchunas) June 18, 2022
In 2021, ProShares launched its Bitcoin Strategy ETF on the NYSE, providing one of many first funding automobiles providing publicity to BTC futures within the United States. Opening at $40 per share on October 18, shares of the ETF have fallen greater than 68% to achieve $12.72 at the time of publication. In addition to BITI, ProShares-affiliated firm ProFunds introduced it will be launching a mutual fund car aimed at shorting the BTC worth under the ticker BITIX.
Related: ProShares recordsdata with SEC for Short Bitcoin Strategy ETF
Investors would not have entry to identify Bitcoin ETFs listed within the United States because of the Securities and Exchange Commission’s seeming reluctance to approve an funding car with direct publicity to the cryptocurrency. However, the regulatory physique authorized ETFs linked to BTC futures beginning in 2021, together with these from ProShares and Valkyrie.