Better late than never it seems. ProShares launches the first ETF which allows investors to gain from shorting bitcoin.
One has to wonder why it took so long, but now the time is at hand. ProShares is launching its «ProShares Short Bitcoin Strategy ETF» designed to allow investors to profit when the daily price of bitcoin declines, the company said in a statement.
The BITI exchange-traded fund (ETF) can be bought via a traditional brokerage, which ProShares says reduces the costs and fees typically associated with taking a short position on bitcoin. The stated objective is to seek results corresponding to the inverse daily performance of the S&P CME Bitcoin Futures Index, according to the fact sheet.
Down From Lofty Heights
ProShares is launching the ETF at a time when bitcoin is trading at around $21,000, and channeling Icarus by having fallen from the lofty heights of nearly $70,000 as early as November of last year, pricing from CoinDesk showed.
«As we know, bitcoin can drop in value. BITI gives investors who believe the price of bitcoin will drop an opportunity to potentially profit or to hedge their cryptocurrency holdings,» says ProShares CEO Michael Sapir.
There is certainly nothing is preventing bitcoin from falling even more, but it also raises the question of is the fund being issued when the horse has already left the stable? After all, the underlying instrument is down around 70 percent currently from its November peak.
ProShares is the first U.S. provider, as well as the largest, to issue ETFs linked to bitcoin. Given the current market conditions will others follow?
