In a recent Twitter thread, Grayscale CEO Michael Sonnenshein claims that the launch of the first short Bitcoin exchange-traded fund (ETF) in the U.S. could be a positive sign for the cryptocurrency industry.
He believes that the approval of new Bitcoin-linked products by the U.S. Securities and Exchange Commission signals that the formidable regulator is gradually becoming more comfortable with the largest cryptocurrency.
As reported by U.Today, the ProShares Short Bitcoin Strategy (BITI), which offers exposure to the inverse performance of the largest cryptocurrency, started trading on the New York Stock Exchange (NYSE) on Tuesday.
Alex DovbnyaYet, the regulator has so far rejected every single attempt to approve a spot-based Bitcoin ETF. Grayscale is currently fighting tooth and nail to convince the SEC to convert its flagship trust into an exchange-traded fund.
Yet, Sonnenshein has stressed that he’s not calling the bottom of the recent correction.
On Saturday, the price of Bitcoin crashed to the $17,500 level, but it then managed to stage a modest recovery. On Tuesday, the flagship cryptocurrency spiked to as high as $21,708.
However, most analysts remain wary of the recent price spike since it could end up being a dead cat bounce. As reported by U.Today, Tom Farley, former NYSE Group president, said that Bitcoin may end up retesting the $17,000 level.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Gamza Khanzadaev
Dan Burgin
Vladislav Sopov