In the last week, new bitcoin investment has launched with an aim to offer investors from institution to short the market. Accordingly, it was REX ETF which is an investment firm based in Connecticut. They have launched the fund which has plan specifically to invest over Bitcoin and other derivatives. They proceed it without directing the exposure to cryptocurrency. REX while announcing indicated that multiple investment products is depending around the tech. Furthermore, sources have revealed that one of those products are even now in process.
As per Filing from last week, With the aim of shortening the market “REX short Bitcoin strategy ETF will have similar scope. This will rely not on cryptocurrency as a whole but financial derivative of Bitcoin.
In case of short selling, investors eventually borrow an asset/security. And then sell it in expectancy of a lower buy – in price later, profit as difference.
Further, here is the explanation from REX ETF about investment funds plan
“…the Fund will obtain short investment exposure to the price movements of bitcoin through financial instruments that provide short exposure to the price movements of bitcoin, including short positions in and short exposure to futures contracts linked to the price of bitcoin or an index thereof and that are traded or listed in the U.S. (“Bitcoin Futures”). The Fund will be actively managed with respect to the instruments held by the Fund, and the notional value of the Fund’s short exposure to bitcoin may vary on each trading day.”
Growing interest and launch of such products are deriving the hope to capture consideration from institutional investors. Option Exchanges like CBOE in the US are trying to launch derivative trades and
Other exchanges are moving on intellectual property that could derive future offerings alongside.