KEY POINTS

  • ProShares is set to debut Bitcoin Short ETF under the ticker BITI on NYSE
  • The ETF will track the S&P CME Bitcoin Futures Index but will deliver the opposite
  • ProShares debuted the first Bitcoin futures ETF in the U.S. in October 2021

ProShares, a provider of exchange-traded funds (ETFs), has confirmed its plans to debut a short Bitcoin-backed ETF in the United States. The ETF will be listed on the New York Stock Exchange (NYSE) on Tuesday.

The ProShares Short Bitcoin Strategy ETF will be listed on the NYSE under the ticker “BITI,” according to an official statement. Under the current bearish crypto market, BITI will give investors the opportunity to potentially profit from a crash in the price of the world's biggest cryptocurrency.

"BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings. BITI enables investors to conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account,” said ProShares CEO Michael L. Sapir.

A short ETF, technically called an inverse ETF, is created for investors to make a profit from the decline in value of the underlying benchmark, in this case, Bitcoin. This is equal to holding various short positions, i.e., borrowing securities and hoping to sell them at lower prices.

The BITI ETF will follow the S&P CME Bitcoin Futures Index but will deliver the opposite of this index. It seeks exposure through futures contracts.

For investors who would rather invest in mutual funds, ProFunds, the mutual fund company of ProShares, also confirmed the launch of the Short Bitcoin Strategy ProFund (BITIX) on Tuesday. However, the objective of the investment will be the same for the ETF and the mutual fund.

ProShares is also responsible for the first Bitcoin futures ETF or the BITO ETF that was debuted on the NYSE in October 2021.

A view of a representation of cryptocurrency Bitcoin plunging into water in this illustration taken, May 23, 2022.
A view of a representation of cryptocurrency Bitcoin plunging into water in this illustration taken, May 23, 2022. Reuters / DADO RUVIC
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