The foremost short Bitcoin ETF has continued to gain more traction as more investors become risk-averse.
The BITI Bitcoin ETF(Exchange-traded fund), which is the first of its kind in North America, has been gaining attention among traders as the crypto market becomes increasingly bearish. The fund, which launched in late September, has already gathered over $100 million in assets under management.
With the current market conditions, many investors are looking for ways to hedge their portfolios and protect themselves from potential downside risk. The “Short Bitcoin” exchange-traded product (BITI) ETF provides them with a way to do this by investing in Bitcoin, which has proven to be a very resilient asset during times of economic turmoil.
In the same manner that Bitcoin’s value has increased, the number of alternatives to buy and sell it has multiplied. BITI, the first inverse bitcoin ETF, grew further in recent weeks after becoming the second-largest bitcoin-related ETF in the United States within four days of trading. The total short exposure has grown even more, by around 300%, over the past month.
Short Bitcoin ETFs Take Center Stage
After entering the market, ETFs quickly became one of the most popular investment vehicles. In the past, ETFs have been used to track various indexes, commodities, and even entire economies. However, with the advent of Bitcoin and other digital assets, ETFs are now being used to track these new asset classes as well.
Inverse ETFs are exchange-traded funds that aim to achieve returns that are opposite of the underlying index or benchmark. There is a variety of inverse ETFs available, each with different strategies and underlying assets. Some of the most popular inverse ETFs include the ProShares Short S&P500 ETF (SH), the ProShares Short Dow30 ETF (DOG), and the ProShares Short QQQ ETF (PSQ).
Inverse ETFs offer a convenient way for investors to profit from market declines or hedge their portfolios against downside risk. They are typically more volatile than traditional ETFs, but they can be a useful tool for those who are comfortable with this level of risk. investors should speak with a financial advisor to ensure that an inverse ETF is appropriate for their investment goals.
Bitcoin Price Continues To Consolidate
The past month has seen Bitcoin price analysis bearish with a steep decline in the price. The primary cryptocurrency is going under a stagnant phase with a downside bias as the price fluctuates between $19k to $20k with each rally being sold into.
BTC/USD Monthly price chart, source: Trading view
The significant bearish momentum pushes the boundaries for the bottom as the pair seems stuck in a quagmire. The key support is at $18,000, and a break below this level could push the price towards $16,500. In a 3-month price chart, it can be observed that Bitcoin has lost over 25% of its value and is currently trading at around $19,000.BTC/USD 3-month price chart.
This is a drastic decline from its all-time high that was set in September 2021. While the short-term picture looks bleak, it’s important to keep in mind that Bitcoin is still up over 400% from this time last year. Investors who are risk-averse may want to consider investing in an inverse ETF such as BITI, which provides them with a way to profit from the current market conditions.
Do you think that the BITI ETF will continue to grow in popularity? Let us know your thoughts in the comments section.
