ETF Investors Can Bet on The Crypto Crash
This year has been difficult for digital currency investors due to a variety of issues ranging from inflation and economic fears to a liquidity problem among high-profile crypto organizations. Bitcoin’s continuous decline has dragged the flagship coin down over 70% from its historic high last November.
On June 21, ProShares introduced BITI, the first U.S. short bitcoin-linked ETF, for investors considering a bet against bitcoin.
This is the companion ETF to BITO, the ETF that invests in long-term bitcoin strategies.
The BITI is inverse (-1x) to the S&P CME Bitcoin Futures Index, providing an opportunity to profit from its collapse. The ETF is based on bitcoin futures contracts and is rebalanced on a daily basis. There is no requirement for investors to open options, margin, or futures accounts, and there is no need to monitor or maintain margin amounts. Furthermore, investors are not at risk of losing more than their initial investment.
Bitcoin and other cryptocurrencies have come under heightened regulatory scrutiny in the last year, but current EU laws may end up assisting coins in what is shaping up to be their most difficult period in history. Bitcoin is at its lowest point in years. it has been below the $20,000 resistance level for weeks. According to Coinbase, the coin is presently at $19,026.38. It is down 0.90 percent in the previous 24 hours. Investors are desperately hoping that their fortunes will improve soon, and those living in the EU may be in luck. Many cryptocurrency investors are likely to view the ideas negatively. They have long cited the market’s lack of regulation as a rationale for their participation.
The EU’s efforts have culminated in a proposal known as Markets in Crypto Assets (MiCA), which attempts to challenge cryptocurrency corporations to prevent money laundering and other illegal activity. As part of the MiCA proposal, the bloc would restrict wallets held by persons other than management from officially licensed enterprises. NFT sales fell to an all-time low of $648 million that month, as the uproar subsided.