First inverse Bitcoin ETF debuts in Canada

Inverse ETF

Them Canadians! Canada is once again beating the US in a Bitcoin milestone, as the first inverse Bitcoin ETF is all set to debut in the country that will enable bets on crypto plunge.

The inverse Bitcoin exchange traded fund is going live on Thursday on the Toronto Stock Exchange.

As noted, this new exchange traded fund will allow investors to take short positions on Bitcoin futures. It will provide an opportunity for those who believe that the current price of the cryptocurrency is not justified, and that Bitcoin is overdue for a correction.

Horizons ETF is behind this new fund.

It’s BetaPro Inverse Bitcoin ETF will provide up to 100% the inverse daily performance of an index that replicates the returns generated over time through exposure to long notional investments in Bitcoin futures.

A 1.45% management fee will be charged.

All this is happening, as regulators south of the border are holding off approving any ETFs that track the cryptocurrency. There is no denying the fact that applications for a standard Bitcoin ETF are piling up in the United States, with at least 8 firms throwing their hat in the ring.

At the same time, the Securities and Exchange Commission has rejected every Bitcoin ETF application since 2013, citing concerns about manipulation and criminal activity.

Meanwhile, Canadian regulators have proved to be more lenient than their US counterparts, granting approvals for ETFs that track Bitcoin. The first Bitcoin ETF in North America launched less than two months ago in Toronto, and has already reached $1 billion in assets.

Perhaps the new SEC chairman with a vibrant history in the crypto space will see that change when he takes charge.

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