ProShares to Launch the First U.S. Short Bitcoin-Linked ETF

ProShares, a premier provider of ETFs and the largest provider of bitcoin-linked ETFs in the country, tomorrow plans to publicly launch the first short bitcoin-linked ETF in the United States.

The ProShares Short Bitcoin Strategy ETF (NYSE Ticker: BITI) provides a convenient way for investors to potentially profit from a decline in the price of bitcoin or hedge their cryptocurrency exposure with the convenience of an ETF. BITI is designed to address the challenge of acquiring short exposure to bitcoin, which can be onerous and expensive for many investors.

The BITI will start trading on the New York Stock Exchange (NYSE) tomorrow.

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"As recent times have shown, bitcoin can drop in value," said ProShares CEO Michael L. Sapir. "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."

BITI is designed to deliver the inverse (opposite) of the performance of the S&P CME Bitcoin Futures Index. It seeks to achieve its objective on each investment day and for no other period. BITI seeks to obtain exposure through bitcoin futures contracts.

For investors who prefer a mutual fund, ProFunds, the affiliated mutual fund company of ProShares, plans to launch Short Bitcoin Strategy ProFund (BITIX) tomorrow. The BITIX mutual fund will have the same investment objective as BITI. 

In October 2021, ProShares launched BITO, the first U.S. bitcoin-linked ETF, and attracted more than $1 billion in assets from the public in just two days. That made it the most successful launch in the history of the ETF industry. ProFunds launched the first bitcoin-linked mutual fund, BTCFX, in July 2021.

"With the additions of BITI and BITIX, ProShares and ProFunds will be the only fund families in the U.S. offering funds that allow investors to express their view on the direction of bitcoin—no matter whether they believe the price will go up or down," Sapir added.

Horizons ETFs has reportedly listed a short bitcoin ETF on the Toronto Stock Exchange.