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ProShares Has Launched The First First US ETF to Short Bitcoin

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ProShares will establish a short Bitcoin Exchange Traded Fund to allow investors to gamble on the largest cryptocurrency’s falls.

The ProShares Short Bitcoin Strategy ETF, according to the announcement on Monday, will allow investors to profit on bitcoin’s decline or hedge their exposure. The product will be released on Tuesday with the ticker “BITI,” as markets reopen after the Juneteenth holiday.

Bitcoin’s value, according to ProShares CEO Michael L. Sapir, could plummet. He also mentioned that the tool will allow investors to have short bitcoin exposure through a standard brokerage account.

The BITI will aim to perform in the opposite direction of the S&P CME Bitcoin Futures Index. Bitcoin futures contracts will be used to expose it.

Investors can also invest through ProFunds (a ProShares-affiliated mutual fund company), which will establish a ProFund, a short-term bitcoin strategy.

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With the debut of the ProShares Bitcoin Strategy ETF, ProShares was the first issuer to provide crypto ETF products in the United States. On its first trading day in October 2021, it topped $1 billion.

This is the first product of its kind in the United States. There are, however, a plethora of short bitcoin exchange-traded products available in places around the world, from Europe to Canada.

Trading in bitcoin and other cryptocurrencies was flat on Monday, following a tumultuous week in which bitcoin went below $20,000 for only the second time since December 2020.