ProShares Aims to Let Investors Bet Against Bitcoin With New ETF

The company filed an application with the SEC for the Short Bitcoin Strategy ETF.

AccessTimeIconApr 6, 2022 at 3:27 p.m. UTC
Updated Apr 6, 2022 at 3:57 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

ProShares has applied to the U.S. Securities and Exchange Commission (SEC) to launch what would be this country’s first inverse bitcoin exchange-traded fund (ETF).

As the name implies, an inverse ETF is designed to perform as the opposite of whatever index or benchmark it is designed to track.

  • An ETF that shorts bitcoin (BTC) from Horizons ETFs currently trades on the Toronto Stock Exchange.
  • ProShares introduced, and won SEC approval for, the first bitcoin futures ETF trading in the U.S., the Bitcoin Strategy ETF (BITO). The SEC has yet to approve a bitcoin ETF that holds actual bitcoin.
  • The inverse product, the ProShares Short Bitcoin Strategy ETF, if approved, would also track bitcoin futures.
  • Bloomberg Intelligence analyst Eric Balchunas notes the SEC rejected a similar offering by Direxion last year, but believes this ProShares product has a shot given ProShares’ track record in getting BITO approved.

UPDATE (April 6, 15:50 UTC): Clarifies that ProShares introduced the first bitcoin futures ETF in the U.S.

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Michael Bellusci is CoinDesk's crypto payments reporter.

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Michael Bellusci is CoinDesk's crypto payments reporter.

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