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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.Read MoreFeedzy

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

A short bitcoin fund from Horizons ETFs currently trades on the Toronto Stock Exchange.

ProShares manages the only Bitcoin ETF trading in the U.S., the Bitcoin Strategy ETF (BITO), which is notable for tracking Bitcoin futures, not the spot price. The SEC has famously delayed or rejected all spot Bitcoin ETF applications.

This short product, the ProShares Short Bitcoin Strategy ETF, would also track futures, as opposed to the spot price.

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.

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