There is good news for people who find bad crypto news to be good. Starting tomorrow, you will be able to buy an exchange-traded fund based on shorting Bitcoin. Financial firm ProShares will launch the first ETF to allow you to bet against Bitcoin, and it is expected to list on the New York Stock Exchange when the bell opens tomorrow, June 21, under the symbol BITI.
The SEC previously approved a Bitcoin futures ETF, also from ProShares, in October. It debuted alongside some of the fastest growing Bitcoin has seen. Now, cryptocurrencies are in serious trouble, with Bitcoin, Ethereum, and even stablecoins all suffering major losses.
The funny thing about the SEC approving an ETF that can be used to short Bitcoin is that it has yet to approve an ETF that actually lets you trade Bitcoin for it. -same. According to the SEC, you can bet on the future of Bitcoin, bet against it, or…that’s about it. On the Crypto Critics’ Corner Bloomberg Intelligence ETF podcast, analyst James Seyffart said, “The SEC has essentially lost the forest for the trees.” While it will occasionally endorse Bitcoin-linked ETFs, like the one debuting tomorrow, it has so far been reluctant to endorse spot Bitcoin ETFs, which would allow you to invest more directly in Bitcoin. This leaves investors interested in bitcoin relying on weird apps and knowing the ins and outs of crypto wallets.
Now, just because you can gamble against Bitcoin’s future with an ETF doesn’t mean all is down for Bitcoin hopefuls and the many meme and retail investors who have locked their own stars on the crypto- change. “Of course, there can be no guarantees,” said Michael Sapir, chief executive of ProShares. the wall street journal, “but based on how the futures market has tracked the spot market, we are optimistic that the inverse product will also track well.” We will have to see if Sapir’s valuation holds true when the market reacts.