Canada is again beating America in a Bitcoin first, as a new inverse Bitcoin fund debuted this week on the Toronto Stock Exchange.
While regulators in the U.S. are waiting on approving any ETFs that might track cryptocurrency, Horizons ETF has created a fund (using the ticker BITI) that will let investors put out short positions on Bitcoin futures, according to their announcement.
“This new ETF will give investors a way to profit if they believe Bitcoin’s price is not justified and that the cryptocurrency is overdue for a downturn., said Todd Rosenbluth, from CFRA Research.
The new fund comes as desire for a Bitcoin ETF increase in the States, with at least eight companies tossing their hat in the arena, including Galaxy Digital Holdings Ltd and Fidelity Investments. The firm that gets the first approval is likely to experience a huge demand, giving issuers the desire to press ahead with proposals regardless of ongoing regulator pushback.
Since 2013, the SEC has declined every Bitcoin ETF application, citing worries about manipulation. Meanwhile, Canadian officials have been more lenient than their U.S. counterparts by giving their approvals for Bitcoin ETFs.
The first ETF that tracks Bitcoin launched in North America under two months ago in Toronto and has already brought in $1 billion in assets.
The BetaPro Inverse Bitcoin fund will deliver up to 100% the inverse performance of an index that, “duplicates the returns made through exposure to long notional Bitcoin futures.” The fund will have a 1.45% fee.
“Buying this fund is as simple as purchasing stock, and does not force investors to open a separate cryptocurrency account., said Steve Hawkins, CEO of Horizons ETFs. “Also, BITI will allow investors to get ‘short’ exposure to Bitcoin without shorting futures or using a margin account.”
Bitcoin break the $64,000 high for the first time this week, on the day of Coinbase’s IPO.