ProShares has filed the United States Securities and Exchange Commission (SEC) with the nation’s first short. bitcoin He applied for his ETF.
As the name suggests, inverse ETFs perform in the opposite direction of the movements of the index they track.
In the present case of BTC An ETF for a short position is currently traded on the Toronto Stock Exchange.
As it is known, ProShares previously applied for an ETF and was approved by the SEC. With this approval, the Bitcoin Strategy ETF (BITO), the first US Bitcoin futures ETF, was launched. However, the SEC has yet to approve a BTC ETF that actually holds BTC.
The reverse ETF product ProShares Short Bitcoin Strategy ETF will also be traded on BTC futures if approved.
“New Bitcoin ETF Has A Chance To Be Approved”
In his analysis, Bloomberg Intelligence analyst Eric Balchunas thinks this ProShares ETF product has a chance as it has already been approved by the SEC, although the SEC rejected a similar filing from Direxion last year.
He argues that investors should be protected as the reason why the SEC has yet to approve a spot BTC ETF. However, it is believed that there will be positive movements in the BTC market once a spot Bitcoin ETF is indeed approved. Spot BTC ETF products are already available in many countries outside the USA.
Mike Novogratz pointed to early 2022 for a spot BTC ETF product, but there is no progress on this yet.
*Not investment advice.