The new Bitcoin short ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. will be the first of its kind in the United States. It is expected to launch tomorrow, Tuesday, on the NYSE.
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- ProShares launches a Bitcoin short ETF.
- It will allow investors to benefit from the fall in the price of BTC.
- It will begin trading on the NYSE on Tuesday.
The provider of investment products, ProShares is launching a new U.S. exchange-traded fund (ETF) that will allow investors to bet on the decline of the U.S. dollar. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
The company announced in a Monday’s press release about the new ETF calledProShares Short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. Bitcoin Strategy (BITI), designed to deliver inverse performance of Bitcoin . The investment vehicle will provide investors with the opportunity to benefit from a fall in the price of Bitcoin or hedging its exposure to cryptocurrencies, according to the statement.
“ As recent times have shown, the value of Bitcoin can fall “said the executive director of ProShares Michael L. Sapir, in the publication. “ BITI gives investors who believe the price of Bitcoin will fall the opportunity to potentially profit or hedge their cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. holdings.” .
According to the ad, BITI will aim to deliver the opposite performance of the S&P CME Bitcoin Futures index. You will gain exposure through futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. contracts of Bitcoin .
The new ETF of ProShares is scheduled to begin trading on the New York Stock Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. (NYSE) this Tuesday, June 21, once the markets reopen after the June 16 holiday. The company noted that it will be the first ETF of its kind in the U.S. market.
Timing for the new ETF
The arrival of the new investment product could not come at a more opportune time. In the last few weeks, Bitcoin and the rest of the cryptocurrency market an area or arena, online or offline, in which commercial dealings are conducted. has been subtracting the gains gains refer to an increase in value or profit. of the past two years amid a steep decline.
Over the weekend, the flagship cryptocurrency lost its USD $20,000 level, a price well below its all-time high near USD $69,000 it recorded in November last year. The bearish outlook extends, with the global capitalization of cryptocurrencies sinking below the $1 trillion mark from $3 trillion by the end of 2021.
The new ETF ofProShares could be attractive in the midst of the price collapse. ProShares was the first in the U.S. to issue a product of its kind linked to futures of Bitcoin in October of last year. At the time, the trade attracted more than $1 billion in assets from the public in just two days, making it the most successful launch in ETF history.
Following that success, the provider is now betting with an ETF of Bitcoin short ETFs, a product that already exists in the European and Canadian markets. Meanwhile, U.S. investors are still waiting for the launch of the first U.S. short ETF. Bitcoin The country’s regulators have not yet approved this, despite the insistence of several companies in the sector.
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash
