ProShares will release a new ETF allowing investors to short bitcoin during harsh market conditions enabling institutions to legally bet against the asset.
ProShares will release a new ETF allowing investors to short bitcoin during harsh market conditions enabling institutions to legally bet against the asset.
- Proshares ETFs will release a new product which will allow investors to short bitcoin.
- Proshares previously released the Proshares Bitcoin Strategy ETF that trades futures contracts as well.
- Bitcoin reached its all time high days after its original ETF was released as this short ETF releases amid harsh market conditions.
Proshares, a provider of exchange-traded-funds (ETFs), is set to release[1] the Short Bitcoin Strategy ETF (NYSE: BITI) on June 21, which will allow investors to bet against bitcoin through the use of futures contracts.
Investors choosing to purchase this ETF are seeking a return of -1x its underlying asset, in this bitcoin, within a single day. Should the investor choose to hold the ETF for longer than the target of one day, Proshares notes that due to rebalances and compounding returns[2], investors will likely experience a different result and direction.
On the other hand, Proshare’s previously launched[3] an ETF for bitcoin, which provided access to futures contracts for the asset. On its first day of trading[4], the Proshares Bitcoin Strategy ETF (NYSE: BITO) traded over $1 billion of volume, marking the second-largest ETF release ever.
Shortly after the the release of Proshare’s original ETF, bitcoin surged to its all-time-high, close to $69,000. In comparison, Proshares has released this ETF allowing investors to short bitcoin as it endures a harsh market correction, which bottomed out around $17,800 and currently is fighting to hold $20,000.
Previously, the original ETF was launched
