ProShares launched the first short bitcoin-linked ETF in the United States last Tuesday.
The ProShares Short Bitcoin Strategy ETF (NYSE Ticker: BITI) provides a way for investors to potentially profit from a decline in the price of bitcoin or hedge their cryptocurrency exposure with the convenience of an ETF.
BITI is designed to address the challenge of acquiring short exposure to bitcoin, which can be onerous and expensive for many investors.
“As recent times have shown, bitcoin can drop in value,” said ProShares CEO Michael L. Sapir.
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.”
BITI is designed to deliver the inverse of the performance of the the S&P CME Bitcoin Futures Index. It seeks to achieve its objective on each investment day and for no other period. BITI seeks to obtain exposure through bitcoin futures contracts.
For investors who prefer a mutual fund, ProFunds, the affliated mutual fund company of ProShares, launched Short Bitcoin Strategy ProFund (BITIX). The BITIX mutual fund has the the same investment objective as BITI.
In October 2021, ProShares launched BITO, the first U.S. bitcoin-linked ETF, and attracted more than $1 billion in assets from the public in just two days. That made it the most successful launch in the history of the ETF industry. ProFunds launched the first bitcoin-linked mutual fund, BTCFX, in July 2021.
“With the additions of BITI and BITIX, ProShares and ProFunds will be the only fund families in the U.S. offering funds that allow investors to express their view on the direction of bitcoin—no matter whether they believe the price will go up or down,” Sapir added.
