The bitcoin It is going through a stage of great depression that in the last month took its price below 20,000 dollars.
After breaking down this psychological barrier, the market’s leading cryptocurrency is now looking for a rebound that will return it to prices closer to its average for the last year, which was around $40,000.
To realize this recovery, however, the cryptocurrency will have to face the incipient suspicion of investors who remain skeptical about the future of crypto assets.
Proof of this is that, as finance.com advanced, bears are storming the cryptocurrency market by betting against platforms like Coinbase or Microstrategy.
And precisely to offer these bears a new investment instrument, the pioneer company in ETFs dedicated to cryptocurrencies and new technologies such as the metaverse, pro shareslaunched this Tuesday the first exchange-traded fund that allows betting short against bitcoin.
Bitcoin pioneers who do not marry cryptocurrency
According to the announcement published by Proshares, its ETF called Proshares Short Bitcoin Strategy (BITI) offers investors “a way to potentially profit from a drop in the price of bitcoin, or to hedge their cryptocurrency exposure with the convenience of an ETF.”
For investors who prefer a mutual fund to an ETF, deepthe investment fund company affiliated with Proshares, also launched the fund this week Short Bitcoin Strategy ProFund (BITIX). A mutual fund that will have the same investment objective as the ETFs BITI.
It should be remembered that the firm Proshares was already in charge of bringing to the market, in October of last year, the first bitcoin ETF on Wall Street, which moved close to $1 billion in its historic debut.
The US company also launched its own metaverse fund last March, listed under the VERS label.
Proshares’ inclination to open up to the crypto market and new technologies, however, is far from that of certain crypto evangelists such as Cathi Woodwhich maintain an almost dogmatic confidence in the revaluation of assets such as bitcoin.
For this reason, the North American company also opened itself to the option of generating profits in the face of the fall of the cryptocurrency, avoiding being linked to it only when it rises.
“As recent times have shown, bitcoin can go down in value,” said Proshares CEO Michael L. Sapir in the launch statement for his new ETF.
“With the additions of BITI and BITIXProshares and Profunds will be the only fund families in the United States to offer funds that allow investors to express their opinion on the direction of bitcoin, regardless of whether they think the price will go up or down,” Sapir added.
Thus, the BITI ETF is designed to perform inversely to the S&P CME Bitcoin Futures Index.
An index that, so far this year, has lost 55 percent. A cut that would have left very juicy returns for bearish investors, if the exchange-traded fund of pro shares It would have opened in early 2022.
The bleeding of bitcoin, in figures
Coinciding with the launch of this bearish ETF, bitcoin was up nearly 2.24 percent on Tuesday morning, returning its price above $21,000.
Despite this slight rise, the collapse of the market’s leading cryptocurrency left a trail of blood in recent days that wiped out billions of dollars, and this is shown by the latest data of the analysis company, glass node.
According to the report issued by the company, investors abandoned positions in bitcoin from June 16 to 19 for a record value of 7.3 billion dollars.
During those dates, about 555,000 bitcoins changed hands at prices that ranged between $18,000 and $23,000, levels that acted as support and resistance levers for the asset, respectively, according to the company’s report.
The daily losses in those three days, therefore, ranged between 1,500 and 2,000 million dollars. A drain that now, at least, some investors will be able to capitalize on by betting short against bitcoin, through the Proshares ETF.
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