Canada launches first inverse Bitcoin ETF

Horizons ETFs Management launched the BetaPro Inverse Bitcoin ETF — the world’s first inverse exchange-traded Bitcoin fund, which allows investors to open short positions on the cryptocurrency.

BetaPro Inverse Bitcoin ETF (ticker BITI) delivers up to 100% inverse daily performance of the Horizons Bitcoin Front index, which ‘reproduces the profits earned over time from long-term conditional investments in Bitcoin futures’.

The fund charges an annual management fee of 1.45%.

Launched by the company as part of a package, another product, BetaPro Bitcoin ETF (ticker HBIT), tracks the performance of futures on the leading cryptocurrency. The ongoing fee is 1%.

‘Last year interest in Bitcoin surged, but this is an asset class that has historically been very volatile and challenging for investors, especially compared with buying an ETF. HBIT and BITI provide ETF options with daily liquidity, allowing investors to open long or short positions on the asset class,’ said Steve Hawkins, president and CEO of Horizons ETFs.

The company’s Bitcoin ETFs trade on the Toronto Stock Exchange (TSX).

As noted, in February Canada became the first in the world to approve an exchange-traded fund based on the first cryptocurrency. In April regulators granted permission to launch such Ethereum-based products, confirming Canada’s leadership in bringing crypto exchange-traded investment instruments to market.

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