Many investors are interested in investing in a Bitcoin ETF because it would provide exposure to Bitcoin without having to buy and store the cryptocurrency directly. However, it is not currently possible to short a Bitcoin ETF.
The reason you can’t short a Bitcoin ETF is because there is no such thing as a Bitcoin ETF. An ETF is a type of investment vehicle that holds a basket of assets and trades on an exchange like a stock.
However, there is no exchange-traded fund that currently offers exposure to Bitcoin.
That said, there are some proposed Bitcoin ETFs that have not yet been approved by the U.S. Securities and Exchange Commission (SEC).
It’s possible that one of these proposed ETFs could eventually be approved and begin trading on an exchange. If that happens, then it would be possible to short the ETF.
However, there’s no guarantee that any of the proposed Bitcoin ETFs will be approved by the SEC. And even if one is approved, it’s not clear when it would begin trading.
So for now, the only way to get exposure to Bitcoin is to buy and hold the cryptocurrency directly.