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ProShares to launch first Short Bitcoin Strategy ETF in the US

on Jun 20, 2022
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  • The ProShares Short Bitcoin Strategy ETF will be introduced on Tuesday, 21 June 2022.
  • The ETF, under the ticker BITI, will allow investors to place bearish bets on the daily price of Bitcoin.
  • ProFunds will also launch the Short Bitcoin Strategy ProFund (BITIX) for investors interested in mutual funds.

Bitcoin traders in the United States looking to benefit from the price movement of the flagship cryptocurrency will from 21 June 2022 have a bitcoin-linked product to explore with.

The ProShares Short Bitcoin Strategy ETF (NYSE: BITI) is set to hit the market, according to leading exchange-traded funds (ETFs) provider ProShares.

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First US short BTC-linked ETF 

According to the firm, BITI is the first short Bitcoin-linked ETF in the US market. Exposure to BITI will be via Bitcoin futures contracts, with a -1x daily objective. Furthermore, the ETF’s inverse price performance will be based on the CME Bitcoin Futures Index).

The launch of the short-bitcoin ETF comes amid a rough ride for BTC price, with the value of the top crypto by market cap dropping over 30% in the past month alone. This past week, BTC is down over 23%, according to data from CoiGecko.

ProShares CEO Michael L. Sapir acknowledges this aspect of Bitcoin, noting that the volatility could benefit interested investors. He added:

BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings. BITI enables investors to conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account.”

Apart from BITI, ProShares is also launching a mutual fund for investors who may fancy that over the ETF. The firm’s affiliate ProFunds will also launch its Short Bitcoin Strategy ProFund (BITIX) on Tuesday, 21 June.

BITIX, like BITI, will also allow investors to bet against the mutual fund. Sapir added:

ProShares launched the first Bitcoin futures ETF in the US in October 2021, with investors pouring in over $1 billion worth of assets within two days.