This will provide investors with a way to short Bitcoin without having to use a margin account or short futures. The world’s first reverse Bitcoin ETF will be listed on the Toronto Stock Exchange on Thursday, which means that Canada once again leads the United States in Bitcoin trading. Although regulators refused to approve any ETF that tracks Bitcoin, the Horizons ETF said in a statement that it will launch a reverse Bitcoin ETF (code BITI), which allows investors to establish short positions in Bitcoin futures. The statement stated that the BetaPro reverse Bitcoin ETF launched by the Horizons ETF will be completely opposite to the index trend, and it will charge a 1.45% management fee. The sister product BetaPro Bitcoin ETF (code HBIT), also listed on Thursday, will charge a fee of 1.00% and track Bitcoin futures.
Steve Hawkins, CEO of Horizons ETF, said in a statement:
“Buying HBIT and BITI is as easy as buying stocks and other ETFs through a broker. It does not require investors to open a separate cryptocurrency account. In addition, BITI will provide investors with a way to avoid using margin accounts or short futures. The way to short Bitcoin.”
Todd Rosenbluth, Director of ETF Research at the Center for Financial Research and Analysis (CFRA Research), said:
“Investors have different views on Bitcoin. Some people think that the current price of Bitcoin is unreasonable and the price should be adjusted. This new ETF will provide opportunities for this group of people.
At the same time, applications for the US standard Bitcoin ETF are also increasing. At present, at least eight companies have participated in the bidding, including Fidelity Investments Inc. and Galaxy Digital Holdings Ltd. . The companies that are the first to be approved may face huge demand, which prompts issuers to continue to submit applications, but regulators are not happy about this.
Since 2013, the SEC has rejected all Bitcoin ETF applications on the grounds of preventing manipulation and criminal acts. Canada’s regulatory agencies are much more lenient in approving ETFs that track Bitcoin and SPAC than in the United States. Less than two months ago, the first Bitcoin ETF in North America was listed in Toronto, and its assets have reached 1 billion US dollars, or about 1.25 billion Canadian dollars.
