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Dear Fellow Investor,
Here’s How to Bet on Immediate-Term Downside in Bitcoin
Bitcoin Just Took a Legislative Hit—Here’s a Smart Way to Play It
After soaring to all-time highs earlier this year, Bitcoin may finally be running out of steam—at least in the near term.
The latest catalyst? A legislative setback in the U.S. House of Representatives, where lawmakers failed to advance a critical procedural motion needed to bring crypto-related bills to a vote. This wasn’t just another hiccup—it was a major blow to industry hopes for much-needed regulatory clarity and broader market support.
According to CNBC, the motion failed by a vote of 196–223, with 13 Republicans siding with Democrats to block the measure. This vote effectively stalls momentum for key crypto legislation that many hoped would boost institutional confidence and mainstream adoption.
As a result, Bitcoin traders were quick to hit the sell button, and the decline could just be getting started.
If you believe Bitcoin is due for further downside in the immediate term, there’s a straightforward way to position your portfolio: the ProShares Short Bitcoin ETF (SYM: BITI).
What Happened in Congress—and Why It Matters
The crypto market has long waited for regulatory clarity—especially as the sector continues to evolve from its Wild West roots into a more mature ecosystem.
Many investors were closely watching a group of bills that would have:
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Established clearer oversight between the SEC and CFTC
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Enabled broader institutional adoption
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Provided consumer protections around stablecoins and exchanges
But with this week’s failed vote, the legislative path is once again uncertain.
That uncertainty immediately weighed on the crypto market, with Bitcoin sliding sharply following the news. And while some long-term investors remain optimistic, the immediate-term outlook now appears more fragile than ever—especially if additional regulatory or macro headwinds emerge.
That’s where hedging tools like the BITI ETF come into play.
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ETF: ProShares Short Bitcoin ETF (SYM: BITI)
The ProShares Short Bitcoin ETF (SYM: BITI) is an inverse exchange-traded fund designed to move in the opposite direction of the price of Bitcoin.
BITI specifically seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the performance of the S&P CME Bitcoin Futures Index.
So, when Bitcoin falls, BITI tends to rise—offering a compelling option for investors looking to hedge their crypto exposure or capitalize on short-term declines.
A Real-World Example of BITI in Action
Let’s take a look at how BITI has responded during previous Bitcoin sell-offs.
Earlier this year, Bitcoin dropped from a high of $107,252.77 in January to a low of about $74,569.86 in April—a steep decline that caught many by surprise.
During that period:
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Bitcoin lost nearly 30% of its value
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BITI climbed from about $21 per share to a high of $27.83 per share
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That’s a gain of roughly 32% over the same timeframe
For traders looking to profit from—or hedge against—sharp corrections in Bitcoin, BITI proved to be a useful tool.
Distributions and Structural Notes
BITI isn’t just about directional exposure—it also pays a monthly distribution, adding another layer of potential value for tactical traders and income-seeking investors.
Here’s a quick snapshot of recent distributions:
BITI also underwent a 1-for-5 reverse stock split in November 2022, which consolidated its shares and helped maintain trading liquidity as Bitcoin’s price fluctuated.
Today, the ETF trades around $17.88, down from its split-adjusted launch price of $195. But if you believe Bitcoin’s recent rally is unsustainable, BITI may be just getting warmed up.
When to Use BITI
It’s important to note that BITI is designed for short-term trades, not long-term holds.
Because it resets daily, compounding effects can distort its performance over longer timeframes—especially in volatile markets. That’s why BITI is best suited for:
✅ Tactical traders
✅ Short-term hedging strategies
✅ Investors expecting immediate downside in BTC
Used properly, BITI can be a powerful way to navigate short-term weakness in the crypto space—particularly in times of legislative uncertainty like this.
Why Now Might Be the Right Time to Hedge
Here are a few reasons why now could be a smart time to consider BITI:
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Congressional Gridlock – Crypto-friendly legislation may remain stalled indefinitely, removing a key bullish catalyst.
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Overbought Conditions – Bitcoin has rallied more than 100% year-to-date. Technical traders may see it as ripe for a pullback.
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Rising Regulatory Pressure – Even without new legislation, agencies like the SEC continue to exert pressure on crypto firms.
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Global Macroeconomic Risks – Inflation, interest rate uncertainty, and global conflict all add to risk-off sentiment, which could impact crypto markets.
Whether you’re actively trading or simply want to hedge part of your crypto exposure, BITI offers an easy way to take advantage of Bitcoin’s downside risk—while collecting monthly income along the way.
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