ProShares Launches ETF Betting on the Fall in Bitcoin

ProShares, a affiliate of exchange-traded funds (ETFs), has launched the Short Bitcoin Strategy ETF. This will give investors an opportunity to profit from the fall in the price of bitcoin or to hedge their investments in crypto. Short selling, a trading strategy, involves placing bets on a fall in the value of an asset.

Michael Sapir, Chief Executive Officer of ProShares statement “It has been learned in recent months that the value of bitcoin may be declining. This ETF is intended for investors who believe that the price of bitcoin will decline and need to make a profit from it or hedge their cryptocurrency holdings.” Will get a chance.” He explained that investors can take short positions in bitcoin by buying an ETF in a brokerage account. Bitcoin ETFs that track the price of cryptocurrencies are gaining popularity in the US due to a delay in allowing spot bitcoin ETFs from the Securities and Exchange Commission (SEC), the market regulator.

Last year the SEC allowed the first bitcoin futures ETF. It was launched by ProShares. This gave institutional and retail investors access to bitcoin without facing technical complications or legal hurdles. ProShares’ Short Bitcoin ETF will give institutional investors the opportunity to trade seamlessly in the largest cryptocurrency by market capitalization.

The price of bitcoin has been declining for the past few months. Last week it went below $20,000 for the first time in nearly six months. It had dropped to around $17,000. However, since then there has been some recovery in the price of bitcoin and is at a little over $21,000. In the US, the Federal Reserve has increased the interest rate to control inflation. its crypto There has been a big impact on the market. Investors are staying away from this high-risk segment. Weak financial position of some of the firms belonging to this segment has also contributed to the decline in the market. Scrutiny regarding cryptocurrencies is being increased in many countries. In some countries, work is being done to legislate for the crypto segment.
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