ETF issuer ProShares has filed a registration application with the US Securities and Exchange Commission for a stock listing of the Short Bitcoin Strategy ETF.
On Tuesday, ProShares filed with the SEC for an investment vehicle that would allow users to bet on bitcoin (BTC) futures using an exchange-traded fund. According to the registration statement, the Short Bitcoin Strategy ETF will be based on daily investment results corresponding to the reverse return of the Chicago Mercantile Exchange Bitcoin Futures Contract Index for the day.
ProShares has just filed for an ETF with short Bitcoin futures. Even though the SEC rejected a similar filing last year, it hit IMO given ProShares’ perfect SEC reading of $BITO and no issues with futures ETFs so far. The ticker must be $FUD or $NGMI. Nice scoop from @kgreifeld.pic.twitter.com/fOieZ0Tp9Y — Eric Balchunas (@EricBalchunas) April 6, 2022
In October 2021, ProShares became the first firm to launch an exchange-traded fund linked to U.S. BTC futures on NYSE Arca under the ticker symbol BITO. At press time, the stock was worth $27.58, down more than 4% in the last 24 hours.
While the SEC has not approved a Bitcoin spot ETF in the United States, it has given the green light to Bitcoin futures investment vehicles starting in 2021, as well as cryptocurrency mining companies. The regulator rejected a similar offer from ProShares in 2018, but the fund, which allows investors to short bitcoin futures from Horizons ETFs Management, is currently traded on the Toronto Stock Exchange under the ticker symbol BITI: BetaPro Inverse Bitcoin ETF.
Related: Leah Wald of Valkyrie Investments on Bitcoin ETFs and the Future of Digital Assets
According to the SEC, the registration of ProShares is a preliminary prospectus that is subject to completion. The filing proposes a public offering 75 days after filing — June 19 — but the SEC has often delayed applications for cryptocurrency ETFs or opened them up for public comment, which also pushes back the deadline for the regulator to approve or reject a stock listing.