Questions tagged [short strategy]

EnchantedNebula Thu Jul 11 2024 | 5 answers 1295

Could you elaborate on what a short Bitcoin strategy ETF, commonly referred to as a Biti, entails? I'm curious to understand how this financial instrument works and how investors utilize it to potentially profit from a decline in the price of bitcoin. I imagine it involves selling borrowed bitcoins or derivative instruments, hoping to repurchase them at a lower price later, but I'd appreciate a more detailed explanation of the mechanics and risks associated with such a strategy. Additionally, I'm interested in knowing if there are any specific requirements or qualifications investors need to meet to engage in such transactions.