(Bloomberg) – The crypto bears that count the collapse through digital currencies is not done yet, get a new tool to bet on new lows.

The ProShares Short Bitcoin Strategy ETF (BITI ticker) launches on Tuesday, becoming the first U.S. reverse exchange-traded fund linked to the largest cryptocurrency. By reversing the performance of a Bitcoin futures index, it aims to provide a relatively cheap and easy way to profit from any further losses.

BITI comes as the virtual currency complex is in turmoil, with digital asset selling amid runaway inflation accelerating following last week’s Federal Reserve rate hike. It’s a spiral that we even see long-term holders start selling, and Bitcoin is down about 70% since its peak in November.

This increases the risk that the new fund has missed most of the drawdown. ProShares’ bet is that making it easier to short sell Bitcoin will encourage more investors to voice their negative views on the crypto.

“We believe that there are many investors who have a short or long term bearish view of Bitcoin and cryptocurrencies in general who have not acted on their view because it was too difficult or too expensive,” said Michael Sapir, CEO of ProShares. by telephone. “These investors will be able to gain short exposure to Bitcoin as easily as buying an ETF in a traditional brokerage account.”

ProShares was also behind the first U.S. Bitcoin-linked ETF in October, the Bitcoin Strategy ETF (BITO). Who enjoyed one of biggest launches in the history of ETFs, but its debut turned out to mark about the peak of the digital asset boom.

BITI charges an expense ratio of 0.95%, matching that of BITO. While this is higher than most actively managed funds, the spot borrowing rate for BITO shares – a measure of the fund’s cost of short selling – currently stands at nearly 13.9 %, according to data compiled by S3 Partners.

The catch is that, like most inverse ETFs, the new product is designed for short-term use only. It returns the inverse performance of its underlying index for one day at a time, meaning it effectively resets every day. Investors who hold the ETF for longer periods may therefore underperform due to its ongoing costs.

The ProShares product is the first bearish Bitcoin ETF to launch, with similar filings from rivals Direxion and AXS still ongoing. pipeline. Direxion applied for such a fund in October after the launch of BITO, but drawn application at the request of US regulators.