Ben Strack

<div id="highlights-block_62b0c1e09a8ea" class="highlights">
 <ul>
 <li>ProShares launched the first bitcoin futures ETF in the US in October</li>
 <li>Horizons ETFs Management’s BetaPro Inverse Bitcoin ETF on the Toronto Stock Exchange is up roughly 80% year to date</li>
 </ul>
 
</div>



Looking to profit from an extended downturn in cryptocurrency markets, an ETF that bets against bitcoin is set to start trading Tuesday in the US.



Run by fund issuer ProShares, the Short Bitcoin Strategy ETF (BITI) is designed to deliver the inverse of the performance of the S&amp;P CME Bitcoin Futures Index via bearish bitcoin futures. The company is dubbing it the first short-bitcoin ETF in the US.



The company is also set to launch a mutual fund, the Short Bitcoin Strategy ProFund (BITIX). Neither fund will invest in bitcoin or other cryptocurrencies directly.



The launches come as bitcoin traded just below the key resistance level of $20,000 on Monday at 2:30 pm ET, reflecting a drop of nearly 60% so far this year — and about 30% in the last month.



“As recent times have shown, bitcoin can drop in value,” ProShares CEO Michael Sapir said in a statement. “BITI affords investors who believe that the price of bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings.”



Canada-based Horizons ETFs Management launched the <a href="https://www.horizonsetfs.com/ETF/BITI" target="_blank" rel="noreferrer noopener">BetaPro Inverse Bitcoin ETF</a> on the Toronto Stock Exchange in April 2021. The fund, which has $45 million in assets, was up roughly 80% year to date.



“This ETF isn’t exactly launching at the best time, given that bitcoin has already experienced significant carnage,” said Nate Geraci, president of The ETF Store, of the ProShares offering. “That said, I expect this product to find an audience among traders looking to play the high-volatility nature of bitcoin.”



Sapir said the company now allows investors to express their view on the direction of bitcoin in more ways than one.



The ETF issuer, which manages about $56 billion, was the first in the US to bring to market an ETF focused on bitcoin futures. The ProShares Bitcoin Strategy ETF (BITO), which launched last October, gathered roughly $1 billion in assets within <a href="https://cms.blockworks.co/first-bitcoin-futures-etf-nears-1b-on-first-day-of-trading/" target="_blank" rel="noreferrer noopener">its first day of trading</a>. The fund is down about 30% in the last 30 days and 56% since the beginning of 2022. 



Amplify Investments’ Transformational Data Sharing ETF (BLOK), the largest blockchain ETF in the US with about $540 million in assets, is down 54% so far this year and about 15% in the past month.



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Bitcoin

ProShares To Launch First US ETF That’s Bearish on Bitcoin

Jacquelyn Melinek

<div id="highlights-block_62054187f5ffd" class="highlights">
 <ul>
 <li>“Web2 had a profound impact on the media sector and…we believe that Web3 may have an equally important role to play in the future of journalism and publishing,” a Binance spokesperson told Blockworks</li>
 <li>This deal is another example of crypto companies’ growing presence in the mainstream market</li>
 </ul>
 
</div>



Binance, one of the largest cryptocurrency exchanges in the world, has committed a $200 million strategic investment into global media company Forbes.



“First and foremost, this is a financial investment in the media industry,” a Binance spokesperson told Blockworks. “Web2 had a profound impact on the media sector and, at Binance, we believe that Web3 may have an equally important role to play in the future of journalism and publishing.”



As a part of the investment, Patrick Hillmann, chief communications officer at Binance, and Bill Chin, head of Binance Labs’ venture capital arm, are expected to join Forbes’ board of directors this quarter after the transaction is closed.



Forbes was founded in September 1917 and is almost 105 years old. It’s well known for its Forbes 30 Under 30 list as well as its billionaires list, which tracks the wealthiest people in the world.



Binance’s Founder and CEO Changpeng ‘CZ’ Zhao ranked <a href="https://www.forbes.com/profile/changpeng-zhao/?sh=6ccd10df6277" target="_blank" rel="noreferrer noopener">22nd</a> on Forbes’ “Singapore’s 50 Richest” list in August 2021, with a $1.9 billion net worth at the time. However, estimates differ; as of last month, Zhao’s net worth was estimated at $96 billion, according to the <a href="https://www.bloomberg.com/news/features/2022-01-09/binance-ceo-cz-s-net-worth-billionaire-holds-world-s-biggest-crypto-fortune" target="_blank" rel="noreferrer noopener">Bloomberg Billionaires Index</a>.



“As Web3 and blockchain technologies move forward, and the crypto market comes of age, we know that media is an essential element to build widespread consumer understanding and <a href="https://cms.blockworks.co/binance-us-new-risk-officer-crypto-industry-must-educate-regulators/" target="_blank" rel="noreferrer noopener">education</a>,” Zhao said in a press release. “We look forward to bolstering Forbes’ Digital initiatives, as they evolve into a next level investment insights platform.”



Binance began in 2017 and quickly scaled to become the largest cryptocurrency exchange in the world by volume, <a href="https://coinmarketcap.com/rankings/exchanges/" target="_blank" rel="noreferrer noopener">data</a> from CoinMarketCap shows. On Thursday, Binance had $19.51 billion in 24-hour volume, over five times the volume of the second-largest exchange, Coinbase, which had $3.46 billion.



Forbes has sought out $400 million of capital through private placement as part of its <a href="https://www.forbes.com/sites/forbespr/2021/08/26/forbes-to-become-public-company-through-business-combination-with-special-purpose-acquisition-company-magnum-opus/?sh=a5b8437320eb" target="_blank" rel="noreferrer noopener">plans</a> from August 2021 to go public with Magnum Opus, a special purpose acquisition company (SPAC). Binance will account for half of that commitment.



The media conglomerate is expected to go public this quarter on the New York Stock Exchange with the ticker FRBS. The shift to the public sector will help Forbes capitalize on its digital transformation, use technology and data-driven insights to further engage audiences and have high recurring revenue streams, it said.



This deal is another example of crypto companies becoming more mainstream. In recent months, a wave of partnerships between crypto firms and sports teams or celebrities inundated the market. Binance itself <a href="https://cms.blockworks.co/binance-hires-nba-star-to-warn-against-celebrity-ads/" target="_blank" rel="noreferrer noopener">hired</a> NBA All-Star Jimmy Butler to warn crypto users not to listen to celebrities.



On Wednesday, the Washington Nationals Major League Baseball team partnered with Terra, while Crypto.com shared its plans to sponsor what will be known as the Formula One Crypto.com Miami Grand Prix in May, Blockworks <a href="https://cms.blockworks.co/washington-nationals-latest-pro-sports-team-to-strike-crypto-deal/" target="_blank" rel="noreferrer noopener">reported</a>.



The Binance stake in Forbes, however, is the first major crypto investment into a US media firm.



Binance is no stranger to ambitious investment sums. In 2020, it put up <a href="https://www.binance.org/en/accelerator" target="_blank" rel="noreferrer noopener">$100 million</a> to support projects on its Binance Smart Chain with an accelerator fund, and in October 2021, it created a <a href="https://cms.blockworks.co/binance-creates-1b-fund-to-accelerate-crypto-adoption/" target="_blank" rel="noreferrer noopener">$1 billion fund</a> to accelerate crypto adoption more broadly.



“With Binance’s investment in Forbes, we now have the experience, network and resources of the world’s leading crypto exchange and one of the world’s most successful blockchain innovators,” Mike Federle, CEO of Forbes, said in a statement.&nbsp;



Federle added that Forbes can become a “true leader” in the emerging world of digital assets with Binance’s help.



Forbes was not available for immediate comment on Thursday.



This story was updated on Feb. 10, 2022, at 12:29 pm ET.



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