With this ETF you can earn money when the price of bitcoin falls

Sandra Loyd

Since yesterday, Thursday, April 15, in Canada, a new exchange-traded fund (ETF) allows investors to make money when bitcoin (BTC) falls in price.

This type of Future contract is made available to those who wish to moderate their exposure to BTC during price corrections, or make downward forecasts. The manager of the investment fund is the company Horizons ETFs Management (Canada) Inc.

The ETF uses a vehicle called BetaPro Inverse Bitcoin or BITI , and had its opening yesterday on the Toronto Stock Exchange (TSX, the Toronto Stock Exchange, Canada). It was issued under the tickers BITI.U and BITI and can be traded in both US dollars (USD) and Canadian dollars (CAD), respectively.

The specialized media Bloomberg considers this ETF as the Bitcoin’s first “reverse” investment fund, in the sense that investors participate with fiat currency against the price of BTC, and not with bitcoin , as is usually done in markets derivatives such as those provided by Binance, Huobi or Okex.

In a press release, Steve Hawkins, CEO of Horizons ETF offered his comments:

There has been a lot of interest in bitcoin over the last year, but it is an asset type that has historically been very volatile and complex to that investors access it, especially if you compare it to any ETF. (…) BITI provides ETF options with daily liquidity to allow investors to take short positions in this asset.

Steve Hawkins, CEO of Horizons ETF.

For his part, Todd Rosenbluth , Head of An ETF investigation from CFRA Research, assured Bloomberg that investors who do not think that the current price of BTC is justified, will be able to access this investment vehicle in anticipation of a correction in the price of the cryptocurrency.

Regarding the downward expectations about the price of BTC that those who invest in these funds have, CriptoNoticias reported on the reasons that analysts have to differ from this perspective.

According to them, the price of BTC could be entering a new bullish period due to the volume of withdrawal of bitcoins in exchange houses towards cold wallets ( hardware wallets ), by the institutions tions.

Through this new ETF, investors can bet in dollars against the price of bitcoin (BTC) and obtain an economic benefit when it falls. Source: pexels.

In addition, the miners of the Bitcoin network would be saving their profits by managing to cover their operational costs. These factors could lead BTC to a price of approximately USD 300,000 in December of this year (2021).

Bitcoin ETFs gain space in Canada

Canada is at the forefront in allowing this type of investment fund in its markets, in contrast to the United States where at least 8 firms such as Fidelity, Galaxy and Grayscale await approval from the Securities and Exchange Commission (SEC) to open their markets in bitcoin.

The US authorities have not wanted to authorize the creation of such investment funds since 2013 , denying one after another. So far, existing ETFs only work with investment vehicles that track the price of BTC.

As we reported in CryptoNews, some ETFs would seek to invest in bitcoin through vehicles provided by Grayscale (GBTC ), as a way to evade legal limitations.

Last March, investment funds in BTC in North America reached the capitalization of 12,326 BTC. At this moment they already exceed 17,493 BTC , according to data from Glassnode, which at the current price of BTC (61,690 USD) already total more than USD 1 billion.

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