ProShares launches the first short bitcoin ETF
On the New York Stock Exchange
ProShares plans to launch the U.S.'s first exchange-traded fund (ETF) that allows investors to bet against the price of bitcoin (BTC).
The ProShares Short Bitcoin Strategy, which will trade on the New York Stock Exchange under the ticker BITI, is designed to give investors an easy way to profit from a decline in the price of bitcoin. It will have an expense ratio of 0.95%.
“As recent times have shown, bitcoin can drop in value,” CEO Michael Sapir said in a press release. “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.”
ProShares will also launch a short Bitcoin mutual fund (BITIX) on the same day through its affiliated mutual fund company, ProFunds. BITIX will have the same investment objective as BITI.
Last October, ProShares launched the first U.S. bitcoin-linked ETF, which attracted over $1 billion in assets from the public in the first two days. The fund trades under the ticker BITO and holds bitcoin futures contracts rather than the cryptocurrency itself.
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