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ProShares, a provider of exchange-traded funds (ETFs), including inverse ETFs and other similar products, stated Monday that it would launch the first short Bitcoin ETF this week.

According to ProShares, the ProShares Short Bitcoin Strategy will trade on the New York Stock Exchange under the ticker BITI. The BITI ETF will be the first of its kind in the United States.

The short Bitcoin-linked ETF intends to provide investors with the option to profit from a drop in the price of Bitcoin or hedge their cryptocurrency exposure. It will have a 0.95 percent expense ratio.

BITI, according to ProShares, is meant to offer the inverse of the S&P CME Bitcoin Futures Index and seeks exposure through Bitcoin futures contracts.

ProShares CEO Michael Sapir stated that, as recent events have proven, Bitcoin’s value may fluctuate. BITI provides a chance for investors who anticipate the bitcoin price will fall to profit or hedge their cryptocurrency holdings. BITI allows investors to buy a bitcoin ETF in a standard brokerage account to have a short exposure to bitcoin.

As the market sell-off continues, investors are worried

While US authorities are delaying the approval of any ETFs that track bitcoin directly, ProShares is creating a fund (ticker BITI) that will allow investors to short Bitcoin futures. ProShares launched the first Bitcoin futures ETF in the United States in October last year.

The announcement shows that at least fifteen organizations, Galaxy Digital Holdings Ltd, Fidelity Investments Inc., and others, have submitted applications for a real Bitcoin ETF in the United States. Every spot Bitcoin ETF application has been denied by the US Securities and Exchange Commission (SEC) since 2013, citing concerns about criminal activities and market manipulation.

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