- Proshares ETFs will launch a new product that will allow investors to sell bitcoin.
- Proshares previously launched the Proshares Bitcoin Strategy ETF, which also trades futures contracts.
- Bitcoin reached its all-time high days after the release of its original ETF as this short ETF was released under difficult market conditions.
Proshares, a provider of exchange-traded funds (ETFs), will release the Short Bitcoin Strategy ETF (NYSE: BITI) on June 21, which will allow investors to bet against Bitcoin through the use of futures contracts.
Investors choosing to buy this ETF are aiming for a return of -1x the underlying asset in this Bitcoin within a single day. Should the investor choose to hold the ETF longer than the one-day target, Proshares notes that investors will likely experience a different outcome and direction due to rebalancing and compounded returns.
On the other hand, Proshare previously launched an ETF for Bitcoin, offering access to futures contracts for the asset. On its first day of trading, the Proshares Bitcoin Strategy ETF (NYSE: BITO) traded over $1 billion in volume, marking the second-biggest ETF release ever.
Shortly after the release of Proshare’s original ETF, Bitcoin surged to its all-time high of nearly $69,000. In comparison, Proshares released this ETF that allows investors to short Bitcoin as it is undergoing a harsh market correction that bottomed at around $17,800 and is currently struggling to hold $20,000.
Previously, the original ETF was launched to give institutional and retail investors access to the asset without going through technical complications or legal hurdles. Similarly, the Proshares short ETF will give institutions access to play against negative sentiment without overcoming these hurdles in a compliant manner.
So far, regulatory talks surrounding ETFs and Bitcoin have been largely turbulent. The Securities and Exchange Commission (SEC) has stalled on spot bitcoin ETF approvals, leading to the dissent of some commissioners who say the agency has stalled for too long.
In fact, Grayscale Bitcoin Trust — the world’s largest Bitcoin fund — recently hired a top lawyer to fight the SEC if the regulator continues to deny the company’s application to convert to a spot ETF.