Amun launches Bitcoin inverse token for traders to short BTC

Amun AG, which recently rebranded to 21Shares, announced the launch of a Bitcoin inverse token known as BTCSHORT or BTCS. The new token from the Swiss fintech company is designed to track and represent the inverse price of the top cryptocurrency as its value. 

Bitcoin inverse token earns on BTC price drops

Although BTCS will enable bears to short Bitcoin, it provides yet another option to earn from the cryptocurrency, not only from price increases. Whenever Bitcoin drops in price, the token will return gains accordingly, per the company’s announcement.

The purchase of the Bitcoin inverse token usually comes as a short-term option, so that holders or traders can quickly earn from Bitcoin near-term price drops in a given 24-hour period. According to the company, the token is equally open to institutional and retail traders.

Meanwhile, Amun’s Bitcoin inverse token is an ERC-20 token on the Ethereum network, which is created as a stablecoin. Hany Rashwan, the company’s CEO, mentioned that the BTCS would be listed on secondary markets such as HitBTC, Liquid, and Bitcoin.com.

High demand for Bitcoin inverse products

Rashwan acknowledged that there are high demands for Bitcoin inverse tokens. Users also want to purchase such products or tokens in a convenient and secure way, he said, adding that BTCS can easily be bought just like other ERC-20 tokens. 

The minting, as well as the burning of the token, will be carried out on Amun’s platform in exchange for USDC due to compliance purposes. USDC or USD Coin is a stablecoin backed by the United States dollar. However, the BTCS is off-limit to Swiss and US investors, including other international countries under sanctions.

In the next few weeks, the company said it would launch inverse tokens for other cryptocurrencies, including Ethereum crypto (ETH). This is not the first time Amun started such a product. The company already listed a BTC inverse ETP, per the report.