Canada Launches First Inverse Bitcoin ETF to Short BTC Futures Without A Margin Account
Meanwhile, Purpose Bitcoin ETF (BTCC) has amassed a whopping 18,330 BTC ($1.46 billion (CAD) in AUM) in just over two months.
After leading in the first Bitcoin exchange-traded fund of North America, Canada is now launching the first inverse Bitcoin ETF.
The product made its debut on Thursday on Toronto Stock Exchange (TSX).
Horizons ETF is releasing the fund under the ticker BITI that allows investors to take short positions on Bitcoin futures.
“Many investors have a view on Bitcoin, and this new ETF will provide an opportunity for those that believe the current price is not justified and that Bitcoin is overdue for a correction,” said Todd Rosenbluth, director of ETF research for CFRA Research.
Horizons’s BetaPro Inverse Bitcoin ETF is providing up to 100% of the inverse daily performance of an index that “replicates the returns generated over time through exposure to long notional investments in Bitcoin futures.”
This ETF is charging a 1.45% management fee, while its sister product called BetaPro Bitcoin ETF (HBIT), which also made its debut the same day, will cost 1.00% and track Bitcoin futures. Steve Hawkins, CEO of Horizons ETFs said,
“Buying HBIT and BITI is as easy as buying any stock or other ETF through a broker and doesn’t require investors to open up separate cryptocurrency accounts.”
“Additionally, BITI will offer a way for investors to achieve ‘short’ exposure to Bitcoin without having to use a margin account or shorting futures.”
The first bitcoin exchange-traded fund, meanwhile, has grown immensely, with the Purpose Bitcoin ETF (BTCC) having amassed a whopping 18,330 BTC ($1.46 billion (CAD) in AUM) in just over two months.
In the meantime, the US SEC has yet to approve a single Bitcoin ETF, having rejected every application since 2013. At least eight firms are currently racing to be the first ones to launch a Bitcoin ETF in the US.