ProShares, a supplier of bitcoin-linked alternate traded funds (ETF), introduced that it plans to launch an ETF aimed toward shorting the world’s largest cryptocurrency.
Known as the ProShares Quick Bitcoin Technique ETF (NYSE Ticker: BITI), the fund will present a manner for traders to doubtlessly revenue from a decline within the value of bitcoin or hedge their cryptocurrency publicity with an ETF, the corporate mentioned in a press release. It’s additional supposed to handle the problem of buying brief publicity to bitcoin, which could be onerous and costly for a lot of traders.
“As latest instances have proven, bitcoin can drop in worth,” mentioned ProShares CEO Michael Sapir, in a press release. “BITI permits traders to conveniently acquire brief publicity to bitcoin by means of shopping for an ETF in a standard brokerage account.”
For traders preferring a mutual fund, ProFunds, the affiliated mutual fund firm of ProShares, plans to launch Quick Bitcoin Technique ProFund (BITIX). The BITIX mutual fund could have the identical funding goal as BITI.
In October final 12 months, ProShares launched the ProShares Bitcoin Technique ETF, the primary US bitcoin-linked ETF, attracting greater than $1 billion in property from the general public in two days.
The crypto market, nonetheless, is presently in a free fall, with bitcoin main the best way.
Bitcoin, dropped on Saturday to as little as $17,592.78, falling beneath the important thing $20,000 stage for the primary time since December 2020. On Monday, it hit a session low of $19,616.10 and was final down 2.2 p.c at $20,112.
For the reason that starting of the 12 months, bitcoin has misplaced 59 p.c of its worth in opposition to the US greenback.
FbTwitterLinkedin
