Completely timed with the crashing value of Bitcoin, a brand new ETF will provide buyers the chance to revenue from the declining value of the main cryptocurrency.
The ETF will present a less expensive method to have quick publicity to Bitcoin, in response to the corporate.
“As latest occasions have proven, bitcoin can drop in worth,” ProShares CEO Michael L. Sapir mentioned. “BITI affords buyers who imagine that the worth of bitcoin will drop with a possibility to probably revenue or to hedge their cryptocurrency holdings.”
The ETF will present the inverse of the S&P CME Bitcoin Futures Index.
Together with the ETF, ProShares plans to launch a mutual fund referred to as Brief Bitcoin Technique ProFund from its mutual fund firm ProFunds.
“With the addition of BITI and BITIX, ProShares and ProFunds would be the solely fund households within the U.S. providing funds that enable buyers to specific their view on the course of bitcoin – irrespective of whether or not they imagine the worth will go up or down.”
The expense ratio of the brand new ETF is 0.95%.
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Why It’s Vital: ProShares is among the main ETF firms with over $55 billion in belongings below administration.
ProShares beforehand launched the primary U.S. Bitcoin futures ETF with the ProShares Bitcoin Technique ETF BITO in October 2021. The ETF was essentially the most profitable launch in ETF historical past, gaining over $1 billion in belongings in its first two days.
The brand new ETF from ProShares would be the first ETF providing quick publicity to Bitcoin within the U.S. A brief Bitcoin ETF beforehand launched in Canada in 2021.
Value Motion: Bitcoin hit a brand new 52-week low within the final week, dropping to $17,708.62. The value of Bitcoin reached an all-time excessive of $68,789.63 in November 2021.
On the time of writing, Bitcoin is buying and selling at $20,109.50, down 14% for the week.
Photograph: Courtesy of Marco Verch Professional on Flickr