ProShares has launched the first short bitcoin-linked ETF (BITI) in the United States of America today. This development comes months after the firm launched the first U.S Bitcoin futures ETF late last year. The development will aid investors to earn nicely despite the ongoing dip in the cryptocurrency market.
How BITI by ProShares works
Furthermore, the ProShares Short Bitcoin Strategy will trade on the New York Stock Exchange as “BITI”. The expense ratio of the new initiative is 0.95% with structures to bypass the damages of the dip. The firm is confident that BITI offers a better feat against the regular standard of the S&P CME Bitcoin Futures index. It will gain exposure via the Bitcoin Futures contracts.
Also, BITI has emerged as the first ETF in the United States of America, and it will be listed on the Toronto Stock Exchange. Around Late last week, Bitcoin went as low as $17,702.32 hitting the lowest since 2020. This development further sums up the ongoing ravage of the bear market which has forced a massive sell-off in risk assets.
While speaking about the development, the CEO of ProShares, Michael Sapir described BITI as a tool against a market dip. Sapir said it will assist investors who believe in more dip in the market while gaining more on their holdings. He added that through BITI, investors can acquire short exposure to Bitcoin by purchasing an ETF via conventional brokerage account.
Meanwhile, around late last year when ProShares initiated the Bitcoin Strategy ETF (BITO), Bitcoin price nearly dip about 70%. However, prior to the launch of the BITI, Bitcoin dipped to 70% of its highest benchmark.
Recent growth of ETF initiatives
Gradually, Bitcoin ETF initiative is gradually gaining popularity with Italy, Germany, and the UK being the latest beneficiaries of the initiative. Launched by Grayscale, the initiative went live on different exchanges in the three counties on May 17, 2022.
As reported by Binbits, Grayscale revealed that the move will further help the firm gain popularity in Europe. Nevertheless, the CEO of the firm, Michael Sonnenshein made it known that the initiative will further protect investors.
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