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New Canadian ‘inverse’ Bitcoin ETF now lets investors short BTC price

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The Horizons Inverse Bitcoin ETF (BITI) is going to enable investors to take advantage of Bitcoin price volatility, says executive.
Canadian Bitcoin (BTC) investors have two more outlets for BTC exposure this week — and can now even bet on a price crash.
In a press release on April 14, Horizons ETFs Management confirmed that its two new exchange-traded funds (ETFs) would start trading on the Toronto stock exchange Thursday.

Horizons: Bitcoin has “polarizing views”

As a pioneer in the regulated institutional investment sphere for Bitcoin, Canada has now given the go-ahead for the first such fund dedicated to Bitcoin price losses, not gains.
Dubbed the BetaPro Inverse Bitcoin ETF (BITI), the fund enables investors to short Bitcoin futures. Rather than a sign of bearish sentiment, however, executives describe the offering as a way to capture episodes of price volatility.
Its sister, the BetaPro Bitcoin ETF (HBIT), will function in the more traditional sense, complementing the short opportunity.
“We know that there are polarizing views on bitcoin and as a result, there are investors with a high degree of conviction on both the bullish and bearish cases for the asset class,” said Steve Hawkins, President and CEO of Horizons ETFs.
“In launching HBIT and BITI, our goal is to provide investment tools that allow investors to get liquid access to the returns of bitcoin futures with the ability to go long or short the asset class, based on their outlook and conviction.”

ETFs see fervent demand

The move comes as Bitcoin circles new ATH around $65,000 and institutional interest grows in tandem.
This week, open interest in Bitcoin futures reached a fresh historic peak, passing $25 billion ahead of exchange Coinbase being listed on Nasdaq.
Grayscale’s Bitcoin Trust (GBTC), nonetheless continued to make a negative share price premium relative to spot prices, and traded at around a 14.3% discount on Thursday.
US regulators have yet to approve Bitcoin ETFs, giving Canada a firm edge despite its market being a fraction of its neighbor.
The Purpose Bitcoin ETF, the first to get the green light in the country earlier this year, now has $1.4 billion CAD ($1.12 billion USD) in assets under management.
As Cointelegraph noted, however, exposure to ETFs is still possible indirectly in the U.S.
Exchange-traded funds, or ETFs, are investment funds that trade on a stock market with their value derived from an underlying basket of assets such as stocks, bonds, commodities and other financial instruments. They provide investors easier exposure to a certain index of assets.
A Bitcoin ETF is similar, but the underlying asset is the Bitcoin (BTC) cryptocurrency rather than other traditional financial instruments.
The hope of Bitcoin ETFs is that they could offer institutional investors an easier way to invest in Bitcoin and crypto markets, thus making it more attractive to the broader investment community.
While there have been many proposals for Bitcoin ETFs presented to the United States Securities and Exchange Commission, or SEC, the main hindrance to their approval is concern for high volatility and market maturity, though this sentiment is starting to shift in crypto’s favor. For years, and most certainly now, there has been demand from institutional investors for this on-ramp to the crypto economy.

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