The crypto market is notorious for its volatility. Rapid rallies are often followed by a hard sell-off. Bitcoin futures and options already offer a way to hedge against price drops. At the Stuttgart Stock Exchange there is now another way to speculate on a falling Bitcoin price: A new exchange-traded product (ETP) shows the price development of BTC – but vice versa.
Even if the Bitcoin price is currently threatening to chew off the teeth at $ 10,000, the performance of the “digital gold” is more than impressive compared to the previous year. Just be aware: on February 27, 2019, BTC was still trading at around $ 3,600.
Those who find this price trend not quite kosher, or those who just want to protect themselves against a sudden onset of crypto winter, now have a new opportunity for this at the Stuttgart Stock Exchange. The Short Bitcoin ETP (SBTC), launched by 21Shares AG, which until recently operated under the name Amun AG. The SBTC ETP tracks the Bitcoin price, but inverted: Bitcoin price reductions mean profits for the Short Bitcoin ETP.
“This is the first time in the Bitcoin industry that an […] ETP ISIN / WKN number is listed and traded in EUR. Investors in Germany have shown strong support for previous crypto offers. As an issuer of crypto products it is important for us, albeit carefully, to respond to the requests of our investors […], ” said Hany Rashwan, CEO of 21Shares, in the press release.