The ETF allows for US investors to potentially profit from a decline in the price of Bitcoin, or hedge their crypto exposure with an ETF.
Institutional investors have racked up a record of $51.4 million worth of investments, increasing the price shorting of Bitcoin (BTC) last week.
Reports from CoinShare’s “Digital Asset Fund Flows” has shown there was $64 million worth of inflows for crypto and digital asset products between June 27 and July 1, with 80% of that amount being short BTC funds. Out of the $64 million, investors based in the United States accounted for $46.2 million of inflows.
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The launch of exchange-traded fund (ETF) issuer ProShare’s BITI, on June 21, 2022 has arrived in the midst of a bear market that has affected both decentralized and fiat finance. BITI joins the list of the ever-growing market for Digital Asset Exchange Traded Funds alongside Valkyrie Bitcoin ETF.
“BITI affords investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings,” said ProShares CEO Michael Sapir. “BITI enables investors to conveniently obtain short exposure to Bitcoin through buying an ETF in a traditional brokerage account.”
The first-ever Short Bitcoin ETF in the U.S. begins trading on Tuesday. ProShares wins the race again. They whiffed on ticker tho. It’s $BITI zzzzz. Should be $NGMI or $FUD or something. https://t.co/QXZRtlhTm3
— Eric Balchunas (@EricBalchunas) June 18, 2022
Investors currently do not have access to spot Bitcoin ETFs listed in the United States due to regulatory restrictions. However, the United States Securities and Exchange Commission has approved ETFs linked to BTC futures since 2021.