SEC Approves ProShares to Launch First “Short” Bitcoin ETF

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2022-06-22 23:19:40

With ProShares launching a Bitcoin Short ETF in the US, investors will now be able to short – or “sell” BTC.

ProShares Launches Bitcoin Short ETF

The announcement was made by ProShares yesterday, June 20. Known as the pioneer Bitcoin ETF provider in the United States, ProShares will allow investors to profit from the fall in the price of Bitcoin (BTC) through a new Bitcoin Short ETF. Besides, the service will come with the advantages ETF has, limiting the complexity and cost of communication challenge.

Short (short) is understood as a type of futures contract used to sell a certain asset or commodity at a predetermined price, at a certain time in the future.

Accordingly, the new ProShares ETF will be listed under the stock code BITI on the Stock Exchange. New York NYSEwhich gives performance opposite to Bitcoin Futures Index of the CME.

Project moderator – ProShares CEO Michael L. Sapir said that he believes the recent market downturn demonstrates the benefits that an ETF based on “short selling” can provide clients. Besides, ProShares will also launch Short Bitcoin Strategy ProFund (BITIX). This is a mutual fund with the same investment purpose as BITI. Sapir CEO said:

“BITI is for investors who believe the price of Bitcoin will drop with the opportunity to profit potential or protect their crypto holdings.”

The company ProShares is famous for launching the first Bitcoin ETF in the US in mid-October 2021 based on futures contracts. This project reached 1 billion trading volume on the first day of launch. After that, a series of other Bitcoin derivative ETFs were approved by the US Securities and Exchange Commission (SEC). However, so far no ETF with direct exposure to Bitcoin has emerged.

However, part of the community was frustrated by the SEC’s reluctance to accept such products. One of the figures in the industry to mention is Will Clemente — leading Blockware insights analyst as he stated:

“Now we have a Bitcoin Short ETF, ETF Futures, Fund Trading with 30%+ Discount, 401k Retirement Fund Options for Bitcoin, but NO Spot ETF [spot]. It is clear that Chairman Gary Gensler and the SEC are against Bitcoin.”

Will Clemente Disgruntled With SEC's Reluctant Action
Will Clemente Disgruntled With SEC’s Reluctant Action

As a result, almost all expectations are now on Grayscale – the world’s largest crypto hedge fund. It is known that the fund is making great efforts to convert its products into ETFs. The Grayscale CEO even threatened to sue the SEC if it denied the company’s next application, citing legal inequity.

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