Now Loading

INVESTORS PILED INTO A BITCOIN EXCHANGE-TRADED FUND THAT BENEFITS FROM CRYPTO DECLINE

INVESTORS PILED INTO A BITCOIN EXCHANGE-TRADED FUND THAT BENEFITS FROM CRYPTO DECLINE 

The ProShares Short Bitcoin Strategy (BITI) ETF received an average of 544.2 BTC, or $ 11 million in current values, making it the second largest bitcoin trading platform on the Vetle Lunde list, Arcane Research analyst noted.


This fund is designed to deliver the opposite effect of bitcoin, which means that fund investors book 1% profit on their investments if the BTC price falls by 1% (before management fees and expenses), with a catch coming out of BTC. It started trading on the New York Stock Exchange on Tuesday.


BITI’s poor performance on opening day met with analysts.


BITI, however, saw strong influences on Wednesday and Thursday, and had assets under 929 BTC, surpassing future bitcoin ETFs for fund providers Valkyrie and VanEck, Lunde said.


The largest ETF on the U.S. list is the ProShares futures-based bitcoin ETF (BITO), the largest of its competitors in the equivalent of 31,000 BTC of under-managed assets, or $ 651 million at current prices.


BITI’s strong performance reflects the volatile nature of the cryptocurrency market as traders estimate that it is a good time to buy BTC and how much its price could go down.


"The economic downturn seems to be making the market right now," said Oanda market analyst Craig Erlam. "I do not see any improvement in the near future, which makes the current support for bitcoin at around $ 20,000 seem risky."


On Twitter, some posters call the launch of a short bitcoin wallet a signal that may be below, taking the opposite approach to something that is not without a logical precedent: ProShares' announcement last October that it would launch the future of bitcoin ETF came just weeks BTC has risen. an all-time high of about $ 69,000 in November.


John Freyermuth, research analyst at Enigma Securities, said it was too early to evaluate the product's success. "Stakeholders who are more aware of the risks are less likely to evaluate these future-based ETFs, let alone with exposure to the opposite," he said.


Many crypto-industry executives and traders have long sought authorization to regulate the location of the bitcoin ETF, which will allow shareholders to get exposure to large crypto assets without ownership, as they see the structure higher than future-based wallets. The U.S. The Securities and Exchange Commission has approved so far.


"It is noteworthy that some derivative products were introduced before the locally based product," Freyermuth said.

Source: yahoo




How do you feel about this blog?

0 Comments

Leave a Reply