ProShares Aims to Let Investors Bet Against Bitcoin With New ETF

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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.

ProShares just filed for a Short Bitcoin Futures ETF. Even tho SEC rejected similar filing last year, this has shot IMO given ProShares' perfect read on SEC w/ $BITO and the lack of issues w/ futures ETFs so far. Ticker should be $FUD or $NGMI. Nice scoop by @kgreifeld. pic.twitter.com/fOieZ0Tp9Y

— Eric Balchunas (@EricBalchunas) April 6, 2022

Read more: SEC Rejects Spot Bitcoin ETF Application From Ark 21Shares

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