The BTC Short ETF is the second biggest ETF in the US as ProShares now controls the two biggest ETFs in the country so let’s read more today in our latest BTC news.
As the BTC price tanks below 2017’s highs, the latest ETF to hit the market was the Proshares short BTC ETF which is the second biggest ETF in the country so far. Since BITI launched a few days ago, it accumulated net short exposure that was equivalent to 939 BTC in a week and though the ETF didn’t have an explosive start, it saw dramatic inflows from June 23rd.
By comparison, the Valkyrie BTF ETF now holds 840 BTC equivalent and VanEck an 830 BTC equivalent with the former being live since last month while the latter was live since October. bTIT is designed to deliver an inverse performance from the CME BTC futures index and allows investors to short BTC and profit off of its downside volatility as Arcane explained with long-term short exposure to BITI as inefficient:
“The fund seeks a return that is -1x the benchmark (BTC) for a single day, and compound effects will lead to underperformance vs the index during upside volatility.”
The ETF prove to be popular in the short-term and left ProShares in charge of the two biggest BTC ETFs in the country while BITI was only outstripped by BITO holds exposure equivalent to 32,715 BTC as of Monday. The BTC short ETF is the second biggest ETF in the US now and a part of its popularity might come from the bearish marekt that it emerged on. CEO Michael L Sapir explained that the latest downturns are proof of the benefit that short ETFs can provide investors.
BITI’s successful launch didn’t sit well with a huge portion of the industry which grew impatient with the SEC’s refusal to approve a BTC spot ETF and Blockware’s lead insights analyst noted that the commissions’ actions suggest that it has an agenda against BTC. Grayscale the world’s biggest BTC fund feels the same way and has filed a lawsuit against the SEC that failed to treat similar investment vehicles in the same way. However, the commission outlined in its filing that the decision didn’t relate to prejudice against BTC as the investment asset but claimed tht Grayscale failed to show that the proposal is consistent with the requirements of the act.
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