New ETF Bets Against Bitcoin
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If you’ve ever wanted to bet against the price of Bitcoin, there’s a proposal for a new exchange-traded fund (ETF) that aims to short (or bet against) the price of the popular cryptocurrency.
Details: On Tuesday, ProShares filed a proposal with the U.S. Securities and Exchange Commission (SEC) to launch the ProShares Short Bitcoin Strategy ETF, a derivative that corresponds to the inverse of the return of Bitcoin futures contracts for a single day.
Background: In October 2021, ProShares received SEC approval for the first Bitcoin futures ETF in the United States. The SEC has yet to accept an ETF that actually holds Bitcoin.
Outlook: If approved, it would be the first ETF to short Bitcoin in the United States. ProShares is aiming to launch the ETF in 75 days, but the SEC could delay its decision.
Bigger Picture: On Wednesday, the SEC approved another Bitcoin futures ETF, this time from trading company Teucrium.
Final Thoughts: There are other ways for investors to short Bitcoin, including margins and binary options, but this ETF could be useful.
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