The first inverse Bitcoin exchange-traded fund will debut on the Toronto Stock Exchange on Thursday, according to Bloomberg.
- Horizon’s BetaPro Inverse Bitcoin ETF will allow investors to take short positions on Bitcoin futures under the ticker BITI.
- The ETF will provide up to 100% the inverse daily performance of an index that replicates the returns generated over time through exposure to long notional investments in Bitcoin futures.
- Management fees have been set at 1.45%, while a sister product BetaPro Bitcoin ETF (HBIT) which tracks Bitcoin futures and also debuts Thursday, will cost 1.00%.
- Analysts say the new ETF will provide an opportunity for those that believe current Bitcoin prices are not justified and that the digital coin is overdue for a correction.
- At least eight firms have filed applications for a standard Bitcoin ETF in the United States. These include Fidelity Investments Inc. and Galaxy Digital Holdings Ltd.
- The Securities and Exchange Commission (SEC) has rejected every Bitcoin ETF since 2013 due to manipulation and criminal activity concerns.