CEO of Grayscale Michael Sonnenshein revealed the launch of a short Bitcoin ETF on Twitter earlier this month.
That’s a good indicator for the crypto-currency business, according to him.
What is the Inverse Bitcoin ETF?
Bitcoin ETF gives investors who think the price of bitcoin will go down an amazing chance to either make money or keep their digital money.
BITI lets regular investors get a short position in bitcoin by buying an ETF through a regular money market fund.
It’s still not clear whether or not the send-off will happen on time. Investors are waiting for the Federal Reserve’s best move and signs of peak growth, but many still think that the cryptocurrency market has reached or is close to a bottom. There are still a lot of weak spots in the markets.
Sonnenshein’s Point of View
Michael Sonnenshein, the CEO of Grayscale, said that the SEC’s leniency shows that they know Bitcoin is changing.
There is no doubt that Sonnenshein does not believe he has grasped the new treatment’s core principle.
According to the SEC’s decision in October to allow for ProShares’ Bitcoin Fate ETF, the bull run in 2021 is expected to be reignited after years of stagnation. The SEC backed the fund, so this happened.
On the other hand, the government has said that it is not possible to make a spot-based Bitcoin ETF.
In order to turn its lead trust into an exchange-traded fund, Grayscale Investments has been wasting time and effort with the Securities and Exchange Commission for the past few months (ETF).
More to think about with the Inverse Bitcoin ETF
The Securities and Exchange Commission (SEC) recently approved products that have to do with Bitcoin. This shows that the powerful regulator is slowly getting more comfortable with the most popular digital currency.
The “Big Board” of Wall Street, the New York Stock Exchange (NYSE), began trading on Tuesday with the ProShares Short Bitcoin Strategy (BITI), which allows for openness to the opposing presentation of the largest digital currency.
There was still a chance that the price of Bitcoin may recover to $17,500 on Saturday, but it was unlikely to last for long. The most well-known form of virtual currency reached a new all-time high price of $21,708.00 on Tuesday.
On the other hand, the recent price drop has made many people in the industry worry that the rebound may only be temporary and make-believe.
The former head of the NYSE Group, Tom Farley, told U.S. Today that the price of bitcoin could go back up to $17,000 in the near future.