What are the risks associated with ProShares Short Bitcoin ETF?

1 answers

• Dec 16, 2021 · 3 years ago
  Investing in ProShares Short Bitcoin ETF involves certain risks that investors should be aware of. While the ETF provides a way to profit from a decline in the price of Bitcoin, it also exposes investors to the risks associated with short selling. Short selling involves borrowing shares and selling them with the expectation that their price will decrease, allowing the investor to buy them back at a lower price and return them to the lender. However, if the price of Bitcoin increases instead, the investor may incur significant losses. Additionally, the ETF's performance can be affected by factors such as borrowing costs, market liquidity, and the availability of shares to borrow. It's important for investors to carefully evaluate these risks and consider their investment goals and risk tolerance before investing in ProShares Short Bitcoin ETF.
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