According to analysts, traditional investors can short sell Bitcoin much more effectively thanks to spot ETFs.
Investors sell the ETF securities they borrowed from brokers at the current price and then at a lower price They can make a short sale by purchasing and returning it.
Gordon Grant, who carries out derivative transactions, “The ability of traditional market participants to safely short Bitcoin has increased because, relative to traditional participants, borrowing shares and for that risk of providing collateraltransacting with unregulated crypto lenders in the CeFi space lower than risk.” said.
According to Grant, traditional investors are looking for spot Bitcoin ETF shares. whether to sell directly short whether for options as a hedge mechanism It can find various usage areas.
Thanks to spot Bitcoin ETFs, investors can directly legally regulated brokers that you can transact with and that Significantly reduces counterparty risk It is stated.
Grant, however, believes that borrowing and short selling of shares a feature of healthy and well-functioning markets He added that it was.