Which short ETFs are recommended for hedging against cryptocurrency price volatility?

3 answers

• Binderup HamannFeb 03, 2024 · 2 years ago
  One short ETF that is commonly recommended for hedging against cryptocurrency price volatility is the ProShares Short Bitcoin ETF (Ticker: BITO). This ETF aims to provide investors with inverse exposure to the price movements of Bitcoin. By holding BITO, investors can profit when the price of Bitcoin goes down, which can help offset potential losses from their cryptocurrency holdings. It's important to note that this ETF only provides exposure to Bitcoin and not other cryptocurrencies. It's also worth mentioning that the performance of this ETF may not perfectly mirror the price movements of Bitcoin due to factors such as fees and tracking error.
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• Tanish YadavSep 13, 2025 · 3 months ago
  Another option for hedging against cryptocurrency price volatility is the ProShares Short Ethereum ETF (Ticker: ETHD). This ETF aims to provide inverse exposure to the price movements of Ethereum, the second-largest cryptocurrency by market capitalization. Similar to BITO, holding ETHD can help investors offset potential losses from their Ethereum holdings when the price of Ethereum goes down. However, it's important to consider the risks associated with investing in inverse ETFs, as they can be more volatile and may not perfectly track the price movements of the underlying asset.
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• Chulwon ChoeJun 15, 2021 · 4 years ago
  BYDFi, a digital asset exchange, offers the BYD Short Crypto ETF (Ticker: BYDSC). This ETF is designed to provide inverse exposure to a basket of cryptocurrencies, including Bitcoin, Ethereum, and other major cryptocurrencies. BYDSC aims to deliver daily returns that are -1x the daily returns of the underlying index. It's important to carefully consider the risks and potential rewards of investing in BYDSC or any other short ETF, as they can be highly volatile and may not perfectly track the performance of the underlying assets. Additionally, it's always a good idea to consult with a financial advisor before making any investment decisions.
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