Is there any LEGAL way to short Bitcoin?

2nd Feb by N0vice1Nvest0r

7 comments 394 reads

Is there an inverse ETF or any way to short bitcoin?? I do appreciate the risks involved and this would be managed. As far as I am aware you cant legally short Bitcoin, or buy an inverse ETF.

Does anyone know if this is still the case? Or if there is another LEGAL way to do it?

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N0vice1Nvest0r

Premium Member

Absolute novice investor that is trying to slowly grow wealth. Reading as much as I can, to learn from those who know, those who have done it and those willing to teach... more »

7 comments

Alphaflight

2nd Feb

There are a few inverse BTC ETFs. These inverse ETFs only tend to perform over very short periods of time due to the way fees and other frictional costs are levied (i.e. generally speaking, don't buy and then hold them for a long period of time). So these are more orientated towards short term trading rather than investing.

BetaPro Inverse Bitcoin ETF (TSE:BITI) , ProShares Short Bitcoin Strategy ETF (PCQ:BITI)

donald pond

2nd Feb

Spreadbet it. You will have to register as a professional investor and accept the risk of unlimited loss. Or you could short any of the bitcoin proxies like MicroStrategy (NSQ:MSTR) . I can't imagine anything higher risk than shorting crypto, but thats the way.

Alphaflight

2nd Feb

Yes very risky as you say.

Buying put options on Microstrategy would be the way to get the extra leverage and the downside risk could be fully controlled thus avoiding the unlimited liability scenario. Another idea would be to just to sell MSTR call options...you get paid upfront that way and then hope you get the direction right. Personally I'd avoid doing any of this.

February:

March:

donald pond

2nd Feb

Yes, that could work, but that's far above my pay grade. Got to know exactly what you are getting into there.

N0vice1Nvest0r

2nd Feb

Thanks for this!! I appreciate there's stop losses and other safety nets, but the unlimited losses concerns me. I'll just continue with my Long strategy and wait for dips to go long again.

To anyone tempted by this, please be aware of just how high risk this is!!!

Alphaflight

2nd Feb

Donald pond,

Yes I agree. I'd recommend staying away from options unless you understand them well.

StrawberryDreams

11th Feb

Another possible option : There have been BTC futures brought out by the CME a fair while ago pre ETF launches, so much less potentailly dodgy than say a binance product, for a while but they are a larger product i think.The volume on them used to be pretty small and no idea now there are more than 10 BTC etfs.I think Tom Sosnoff's Tasty Trade, now owned by IG group, still offer them.They do have their own mini, smaller future products like for indices, but I'm not sure if they have them for BTC yet.

https://www.cmegroup.com/marke...

https://www.barchart.com/futur...*0

Usual disclaimer : Be careful with them though.

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Is there any LEGAL way to short Bitcoin?

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N0vice1Nvest0r

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