Leading Bitcoin ETF provider in the United States, ProShares, announced that it will launch the first “short” position ETF on Tuesday (21), allowing investors to effectively bet against the asset’s performance.
In a statement, the company says, “The ProShares Short Bitcoin Strategy ETF offers investors a way to potentially profit from drops in bitcoin priceor a hedge of your position relative to the asset, with the convenience of an ETF.”
The ProShares Short Bitcoin Strategy ETF (with BITI ticker on the NYSE) was designed to “meet the traditionally onerous and expensive challenge of acquiring short positions” on bitcoin. The company will also launch the Short Bitcoin Strategy ProFund (BITIX) on Tuesday (21), a mutual fund with the same investment objective as BITI.
ProShares CEO Michael L. Sapir noted that the new products “will be the only ones in the US that allow investors to voice their opinion on bitcoin, being optimistic or pessimistic about the price.” Furthermore, Sapir believes that the Recent events in the crypto market have proved the kind of benefit that an ETF”shorts” can provide.
Know more: BTC Investors Record Biggest Realized Loss in USD in Asset History
A “short” position is an investment technique similar to futures contracts, but used when an investor believes that the value of an asset is about to fall.
As in futures contracts, short positions are cash-settled, ultimately equivalent to bets on the price. In other words, investors in short positions bet on the fall in value and, instead of delivering the real asset to its buyer, debit or credit the difference between the initial price and the final settlement.
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