Proshares rolls out first ETF to short Bitcoin and will give an opportunity to profit or to hedge their crypto holdings if prices drop so let’s read more today in our latest Bitcoin news.
ProShares is an exchange-traded fund provider which announced a new product that will allow investors to bet against BTC which is the first time in the US. As Proshares rolls out the first ETF which is slated to begin trading under BITI ticker on the New York Stock Exchange and will provide an opportunity to profit if the prices of the digital asset decline.
Short selling is an investment strategy whcih speculates on an asset falling in value compared with traditional bets on potential increases among bonds, stocks, and cryptocurrencies. The ETF is an investment product that allows investors to purchase shares that represent an asset. The ProShares CEO Michael Sapir added:
“As recent times have shown, Bitcoin can drop in value. BITI affords investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings.”
He added that he can convincingly obtain short exposure to BTC via buying an ETF in a traditional brokerage account. The launch of an ETF comes at a time when BTC and the market dropped. BTC was trading at $20,306 and last November it hit an ATH of $68,789. BITI delivers the performance of the S&P CME Bitcoin Futures index and will obtain exposure via BTC futures contracts. Bitcoin ETFs track the price of cryptocurrencies becoming more popular in the US because of the SEC which was slow to approve the spot BTC ETF product. In October, the SEC approved the first BTC futures ETF which is another Proshares product.
As recently reported, The SEC Commissioner Hester Peirce urges the SEC to stop delaying the decisions of crypto ETFs, slamming the watchdog for failing to greenlight the spot BTC ETFs. She said the organization should provide more guidelines and regulatory clearance for the funds and exchanges that want to launch such products. In her latest speech that can be seen on the SEC website, she urged the Commission to stop denying spot crypto exchange-traded products and argued that in the past 13 years, BTC grew into a mature asset that attracts investors from a wider range of backgrounds. With the adoption rate growing, and ETPs getting approved in Canada, the Commission should follow along.
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