Horizons ETFs launches long and short bitcoin futures ETFs
Horizons ETFs Management has launched the BetaPro Bitcoin ETF (HBIT) and the BetaPro Inverse Bitcoin ETF (BITI). Shares will trade on the Toronto Stock Exchange (TSX), under the ticker symbols HBIT (Cdn$ Shares) and HBIT.U (US$ Shares), and BITI (Cdn$ Shares) and BITI.U (USD Shares), respectively.
As part of Horizons ETFs' BetaPro family of funds, HBIT and BITI are part of Canada's only suite of funds that provide leveraged, inverse-leveraged, and inverse exposure to asset classes through the use of futures contracts and derivatives.
HBIT and BITI provide long and inverse exposure, respectively, to the Horizons Bitcoin Front Month Rolling Futures Index (Excess Return) (the "Index"). BITI is the world's first ETF to provide inverse exposure to bitcoin futures.
"There is a lot of interest in bitcoin in the last year, but it is an asset class that has historically been very volatile and complex for investors to get access to, especially when compared to buying ETFs. HBIT and BITI provide ETF options with daily liquidity that allows investors to take either a long or short position on the asset class," says Steve Hawkins, President and CEO of Horizons ETFs. "Buying HBIT and BITI is as easy as buying any stock or other ETF through a broker, and doesn't require investors to open up separate cryptocurrency accounts. Additionally, BITI will offer a way for investors to achieve 'short' exposure to bitcoin without having to use a margin account or shorting futures directly."
HBIT is designed to provide investment results, before fees, expenses, distributions, brokerage commissions, and other transaction costs, that endeavour to correspond to the performance of the Index that replicates the returns generated over time through exposure to long notional investments in bitcoin futures.
BITI is designed to provide daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to one times (100 per cent) the inverse (opposite) of the daily performance of the Index that replicates the returns generated over time through exposure to long notional investments in bitcoin futures. It is important to note that BITI does not seek to achieve its stated investment objective over a period of time greater than one day.
Subject to negotiations with the counterparties, the Manager anticipates under normal market conditions to manage the negative exposure of BITI to be as close to one-times (100 per cent) as practicable, however the Manager can, at its sole discretion, change the negative exposure based on the current market conditions and other factors considered relevant. The negative exposure employed by BITI will be posted on the Manager's website at www.HorizonsETFs.com, and any changes to the negative exposure would be disclosed by way of public announcement.
At its launch on 15 April, 2021, the opening negative exposure of BITI is one times (100 per cent) the inverse (opposite) of the daily performance of the Index.
"We know that there are polarising views on bitcoin and as a result, there are investors with a high degree of conviction on both the bullish and bearish cases for the asset class," says Steve Hawkins, President & CEO of Horizons ETFs. "In launching HBIT and BITI, our goal is to provide investment tools that allow investors to get liquid access to the returns of bitcoin futures with the ability to go long or short the asset class, based on their outlook and conviction."