America’s first ever bitcoin shorting ETF has began trading at NYSE after the Securities and Exchanges Commission did not refuse listing with opening bids starting at $38.50, lower than the $40 opening price.
The ProShares Short Bitcoin Strategy ETF (NYSE Ticker: BITI) inverses the ProShares Bitcoin Strategy ETF (BITO) which began trading right at the peak of bitcoin’s price in October/November.
As BITO has only been down since it launched, with $10,000 invested in October now giving you $3,000, plenty are wondering whether BITI will also only be down.
A long bitcoin ETF at the top, and a short at the bottom, is what traders are speculating with BITI, like BITO, based on CME bitcoin paper futures.
“BITI enables investors to conveniently obtain short exposure to bitcoin through buying an ETF in a traditional brokerage account,” said ProShares CEO Michael Sapir.
There’s a short ETF already trading on the Toronto Stock Exchange, which also has the ticker of BITI, potentially causing some confusion.
But this one is on the New York Stock Exchange and available in USA, one of the very few bitcoin related ETFs in America.
When BITO launched to buy bitcoin through the stock market, some $2 billion were raised within two days.
Whether BITI will also attract billions to short remains to be seen following a 70% plunge in bitcoin’s price that has led to some suggesting it may have reached the bottom range.