ProShares Short BTC ETF Grew By 300% In One Week: Report

The ProShares short BTC ETF grew by 300% in one week and BITIT now holds positions equivalent to 3811 BTC as we can see more today in our latest Bitcoin news.

The ProShares short BTC ETF increased by 306% in oen week and cemented its place as the second-biggest ETF in the US. BITI holds net short exposure equal to 3811 BTC or increases from the 937 BTC according to Arcane Research and most new inflows arrived between June 29 and June 30. The fund launched in June and became the country’s second-biggest BTC ETF in two days trailing another ProShares investment vehicle the ETF Bitcoin Strategy which contains more than 32,000 BTC.

BITI saw larger net inflows than BITO on launch day, but BITO flows outpaced BITI on day 2.

While the ETF launch during the October rally attracted massive amounts of capital to BTC, the recent doom and gloom period has not contributed to similar short demand momentum. pic.twitter.com/UGIgFPSJ2k

— Vetle Lunde (@VetleLunde) June 23, 2022

An ETF or an exchange-traded fund and provides investors with exposure to the underlying asset. This can be quite useful when investing in crypto or commodities which can be hard to transfer or store. So far, the only BTC ETF products approved in the US are the futures-based which means they are backed by the futures contracts like cash settled bets on what the BTC price will be at a later date and not the current prices.

BITO was the first product to launch in the country which made it highly popular with investors. It is structured differently as its performance is correlated to the s&P CME BTC futures index and the investors profit when the prices of BTC drop. Given that BITI is more than 10% of the BITO Size, it can mean that ETF investors prefer long exposure to BTC and Arcane even noted that the long-term exposure to BITI is inefficient. The sport-based BTC ETF product backed by real Bitcoin was rejected by the US SEC and the regulator is being used by Grayscale for the unwillingness to apply equal treatment for the spot and futures funds both of which were approved in other countries.

As recently reported, 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.