ProShares to Unveil First US Short Bitcoin-Linked ETF

ProShares, an issuer of exchange-traded funds (ETFs), says it will launch the first US short Bitcoin-linked ETF (BITI) on Tuesday.

The planned unveiling of BITI comes eight months after the ETF provider launched the first US Bitcoin-linked ETF in October 2021.

ProShares similarly launched the first Bitcoin-linked mutual fund (BTCFX) in July last year.

The ETF provider explained that BITI was designed to address the high cost that comes with short exposure to Bitcoin.

“The ProShares Short Bitcoin Strategy ETF (NYSE Ticker: BITI) provides a 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,” it explained in a statement.

However, the issuer noted that investors who prefer to invest in mutual funds can opt for the Short Bitcoin Strategy ProFund (BITIX).

ProShares disclosed that BITIX will also be launched on Tuesday by its mutual fund affiliate, ProFunds.

The ETF provider along with its affiliates manage $55 billion in assets.

“The BITIX mutual fund will have the same investment objective as BITI,” ProShares said.

BITI: To What End?

ProShares explained that BITI seeks to achieve the opposite of the performance of the S&P CME Bitcoin Futures Index.

In turn, the S&P CME Bitcoin Futures Index measures the performance of the CME Bitcoin Futures market.

Additionally, BITI seeks to gain exposure through Bitcoin futures contracts, the company said.

Explaining the purpose of BITI, Michael L. Sapir, the CEO of ProShares, pointed out that recent times have shown that Bitcoin can drop in value.

Sapir explained that BITI gives investors who believe that the price of Bitcoin will drop the opportunity to profit or hedge their cryptocurrency holdings.

Moreover, he explained that the ETF enables investors to conveniently obtain short exposure to bitcoin by buying an ETF in a traditional brokerage account.

“With the additions of BITI and BITIX, ProShares and ProFunds will be the only fund families in the US 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 explained in the statement.

The ETF does not invest directly in or hold bitcoin, ProShares said.