Bitcoin is getting stabbed in the back by a company that at one point, really seemed to promote it. That company is Pro Shares, the firm that ultimately unveiled the world’s first ever bitcoin futures-based exchange-traded fund (ETF), and it has since released a similar product that allows traders to bet against the world’s number one digital currency by market cap as the price crashes it appears to be suffering from continue.
Pro Shares Releases ETF for Shorting Bitcoin
Pro Shares launched the United States’ first bitcoin-based ETF product in the latter half of 2021. The news was followed by heavy joy given that the Securities and Exchange Commission (SEC) had to sign off on such a product, something that many felt would never happen.
While much of the sentiment was positive, some complained that the technology behind the ETF was based on futures rather than real, physical bitcoins. It was initially stated by these critics and other analysts that spot trading would be more effective and efficient for the space and its investors.
While that product was very much working in bitcoin’s favor, this new ETF will go against it in many ways. This is designed to help traders remain affluent throughout the ongoing crypto crash, which has been going for several months and has ultimately led bitcoin to shed roughly 70 percent of its overall value since November.
Pro Shares says the new ETF will be launched under the ticker symbol “BITI.” It will charge an annual expense ratio of about 0.95 percent. In a statement, the company announced:
BITI is designed to address the challenge of acquiring short exposure to bitcoin, which can be onerous and expensive for many investors.
CEO of the firm Michael Sapir also explained in an interview:
BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their crypto holdings… As recent times have shown, bitcoin can drop in value.
Bitcoin has truly reached a pivotal point in its existence given that just last year, many analysts were convinced the world’s number one digital currency by market cap was making a run at $100,000. This would have marked the first time in which bitcoin rose to six-figure territory, though at press time, it does not look like this is going to happen – at least not during this year.
Will the Asset Recover Next Year?
The good news is that hope is not lost, and despite all the recent dips, some analysts think 2023 could be the year in which bitcoin turns itself around and reaches the $100,000 price so many traders have long had their eyes on.
Granted the bitcoin price remains low and digital assets are marred by bearish activity the ETF is slated to remain popular and gain further interest.