The leader here is the Swiss bank Vontobel, which has been offering such securities for a long time. The so-called short mini futures serve as a hedge against falling Bitcoin prices. Their underlying value is not the Bitcoin price, but rather derivatives traded in dollars on the US derivatives exchange in Chicago, Bitcoin Futures.
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If the price of the underlying asset, i.e. the Bitcoin Future, falls, the investor’s bet pays off. Vontobel offers several certificates at different base prices. The base price is the starting point from which the price of the certificate is calculated. At the same time, the certificate has a kind of natural barrier, the so-called stop loss limit. If the Bitcoin price rises and the limit is reached, the certificate will be sold automatically. This is intended to protect investors from excessive losses. Then the capital invested is gone, but the investor cannot lose more than his investment – in contrast to short selling on a Bitcoin exchange.