{"id":1551,"date":"2022-06-20T22:22:41","date_gmt":"2022-06-20T22:22:41","guid":{"rendered":"https:\/\/prendergast.net\/?p=1551"},"modified":"2022-06-20T22:22:41","modified_gmt":"2022-06-20T22:22:41","slug":"proshares-to-release-etf-that-allows-investors-to-short-bitcoin","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=1551","title":{"rendered":"ProShares To Release ETF That Allows Investors To Short Bitcoin"},"content":{"rendered":"<h1><strong>ProShares To Release ETF That Allows Investors To Short Bitcoin<\/strong><\/h1>\n<p>by Shawn Amick&nbsp;<\/p>\n<p><img src=\"https:\/\/proxy.feedspot.com\/26dc2bdb648a1d9e0c77f6532c797891d60fb4b8\/68747470733a2f2f626974636f696e6d6167617a696e652e636f6d2f2e696d6167652f745f73686172652f4d546b774d6a51784d4459344d4441794f4451324d444d342f626974636f696e2d73706f742d6574662d7365632e706e67\/?p=3\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size:18px\">ProShares will release a new ETF allowing investors to short bitcoin during harsh market conditions enabling institutions to legally bet against the asset.<\/span><\/p>\n<ul>\n<li><span style=\"font-size:18px\">Proshares ETFs will release a new product which will allow investors to short bitcoin.<\/span><\/li>\n<li><span style=\"font-size:18px\">Proshares previously released the Proshares Bitcoin Strategy ETF that trades futures contracts as well.<\/span><\/li>\n<li><span style=\"font-size:18px\">Bitcoin reached its all time high days after its original ETF was released as this short ETF releases amid harsh market conditions.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size:18px\">Proshares, a provider of exchange-traded-funds (ETFs), is set to&nbsp;<a href=\"https:\/\/www.proshares.com\/fund-highlights\/short-bitcoin-etf-biti\/\" target=\"_blank\" rel=\"noopener\">release<\/a>&nbsp;the Short Bitcoin Strategy ETF (NYSE: BITI) on June 21, which will allow investors to bet against bitcoin through the use of futures contracts.<\/span><\/p>\n<p><span style=\"font-size:18px\">Investors choosing to purchase this ETF are seeking a return of -1x its underlying asset, in this bitcoin, within a single day. Should the investor choose to hold the ETF for longer than the target of one day, Proshares notes that due to&nbsp;<a href=\"https:\/\/www.proshares.com\/faqs\/effects-of-daily-rebalancing-and-compounding-on-geared-investing\/\" target=\"_blank\" rel=\"noopener\">rebalances and compounding returns<\/a>, investors will likely experience a different result and direction.<\/span><\/p>\n<p><span style=\"font-size:18px\">On the other hand, Proshare&rsquo;s previously&nbsp;<a href=\"https:\/\/bitcoinmagazine.com\/business\/proshares-bitcoin-futures-etf-to-launch-on-new-york-stock-exchange-tuesday\" target=\"_blank\" rel=\"noopener\">launched<\/a>&nbsp;an ETF for bitcoin, which provided access to futures contracts for the asset. On its&nbsp;<a href=\"https:\/\/bitcoinmagazine.com\/markets\/bito-first-bitcoin-futures-etf-trades-1-billion-on-first-day\" target=\"_blank\" rel=\"noopener\">first day of trading<\/a>, the Proshares Bitcoin Strategy ETF (NYSE: BITO) traded over $1 billion of volume, marking the second-largest ETF release ever.<\/span><\/p>\n<p><span style=\"font-size:18px\">Shortly after the the release of Proshare&rsquo;s original ETF, bitcoin surged to its all-time-high, close to $69,000. In comparison, Proshares has released this ETF allowing investors to short bitcoin as it endures a harsh market correction, which bottomed out around $17,800 and currently is fighting to hold $20,000.<\/span><\/p>\n<p><span style=\"font-size:18px\">Previously, the original ETF was launched to provide institutional and retail investors access to the asset without dealing with technical complications or legal hurdles. Similarly, the Proshares short ETF will provide institutions access to play towards negative sentiment without interfacing with those same hurdles in a compliant manner.<\/span><\/p>\n<p><span style=\"font-size:18px\">Thus far, regulatory conversations surrounding ETFs and bitcoin have been largely tumultuous. The Securities and Exchange Commission (SEC) has stalled approvals for spot-bitcoin ETFs, resulting in the&nbsp;<\/span><a href=\"https:\/\/bitcoinmagazine.com\/markets\/sec-commissioner-the-regulatory-agency-should-stop-denying-spot-bitcoin-etfs\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size:18px\">deviation of some commi<\/span>ssioners<\/a>&nbsp;who say the agency has stalled too long.<\/p>\n<p><span style=\"font-size:18px\">In fact, Grayscale Bitcoin Trust &#8211; the largest bitcoin fund in the world &ndash; has recently hired a&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-07\/grayscale-hires-top-obama-admin-lawyer-as-it-seeks-etf-nod?srnd=cryptocurrencies-v2\" target=\"_blank\" rel=\"noopener\">top legal mind<\/a>&nbsp;to combat the SEC should the regulator continue to deny the company&rsquo;s application to convert to a spot-ETF.&nbsp;<\/span><\/p>\n<p><span style=\"font-size:18px\"><a href=\"\/\/markethive.com\/rico40\/page\/ronaldtate\" target=\"_blank\" rel=\"noopener\"><img alt=\"hive\" src=\"https:\/\/tse2.mm.bing.net\/th\/id\/OIP.JLIsrIiUHeuz9sWaaYNLPQHaD7?pid=ImgDet&amp;rs=1\" style=\"border-style:solid; border-width:1px; height:410px; width:774px\" \/><\/a><\/span><\/p>\n<p><\/p>\n<p>Tim Moseley<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ProShares To Release ETF That Allows Investors To Short Bitcoin by Shawn Amick&nbsp; &nbsp; ProShares will release a new ETF allowing investors to short bitcoin during harsh market conditions enabling institutions to legally bet against the asset. Proshares ETFs will release a new product which will allow investors to short bitcoin. Proshares previously released the &hellip; <a href=\"https:\/\/prendergast.net\/?p=1551\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">ProShares To Release ETF That Allows Investors To Short Bitcoin<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[533],"_links":{"self":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1551"}],"collection":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1551"}],"version-history":[{"count":0,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1551\/revisions"}],"wp:attachment":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}