Bitcoin can now be shorted through Canada's Bitcoin ETF option.
Canada has been at the forefront of Bitcoin ETF adoption in the western world. The North American country began trading Bitcoin ETFs in February. It quickly became a hotspot for digital assets. Less than a week into it's starting, Glassnode reported that the AUM (Assets under Management) of the Purpose ETF had surpassed $500 million.
Major Signals
- Investors can now short Bitcoin.
- Purpose ETF, Canada's first ETF option, created the opportunity for its investors.
- Bitcoin (BTC) investors in Canada have two more BTC investment options this week — and can even profit on a price crash.
Horizons ETF Management revealed in a media statement on Wednesday that its two new exchange-traded funds would begin trading on the Toronto stock exchange on Thursday.Canada, having become a leader in Bitcoin's latest digital asset, has created an opportunity for investors to take advantage of the dips in bitcoin.
The BetaPro Bitcoin Inverse ETF (BITI) as it has been dubbed, enables investors to have a shorting opportunity in Bitcoin. Trying to allay fears, it was expounded that the offer is just as an opportunity for investors to benefit from the price dips rather than a sign of bearishness.
It is related to the Bitcoin BetaPro ETF (HBIT) which works more traditionally, also in the shorting space. The company CEO said they were merely taking advantage of the opportunity presented by the contrasting views of the investors concerning Bitcoin. Some of the investors very strongly bullish about Bitcoin and others were very bearish about it and expected it to crash at any moment. He said that the ETF options by design with both views in mind.
Recently there has been a lot of interest in Bitcoin put institutional and at the retail level. Bitcoin recently traded at a 65000 dollar level. There has been a lot of speculation that it could trade above $70,000 even close to $100,000.
U.s. authorities are yet to see the need to authorize a sole ETF, providing Canada with a solid advantage even though the U.S market is bigger than it.
The Canadian bitcoin ETF is currently worth about $ 1.4 billion Canadian dollar (US$ 1.12 billion) in assets under management, the first to gain the green light in the country in the beginning of this year.
Conclusion
The Bitcoin ETF was created for investors who were interested in the amazing opportunities available in Bitcoin and cryptocurrencies in general but were held back by unfamiliarity to the terrain and the volatility of the market. The ETF offered them the opportunity to trade and benefit from the boom in the crypto market while not directly trading Bitcoin.
The chance to short bitcoin like a welcome opportunity for most of these investors because while everybody's eyes might be on bitcoin, not everybody has positive sentiments concerning it.
No matter which camp you belong to, you could choose where you stood and put your money where your mouth is.
Question of the day
Do you think this is bearish news? Let us know in the comments.
