Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

  • Bitcoin Investment Trust trades well above the bitcoin it owns
  • Left recommends shorting the trust, buying bitcoin futures
Andrew Left, Citron Research founder, discussed bitcoin futures trading in a Dec. 18 interview.Source: Bloomberg
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As newly launched derivatives contracts draw pros into the bitcoin market, a short seller still sees a massive inefficiency -- and a chance to profit off naïve traders.

The Bitcoin Investment Trust, a publicly traded vehicle whose bitcoin holdings are worth $1,601 a share, nonetheless trades at a price more than double that amount, according to data compiled by Bloomberg.