Crypto News- ProShares, a prominent player in the U.S. exchange-traded funds (ETFs) arena, is making moves to introduce a lineup of Bitcoin (BTC) ETFs designed to provide indirect exposure. This development coincides with the initial days of trading for spot Bitcoin ETFs on domestic stock exchanges.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on January 16, ProShares is seeking approval for leveraged and inverse Bitcoin ETFs. The proposed ETFs aim to deliver daily investment outcomes based on the fluctuations in Bitcoin prices, leveraging the daily performance of the Bloomberg Galaxy Bitcoin Index (BGCI).
ProShares Pursues 5 Bitcoin ETFs Centered on Indirect Exposure, Files Applications
The five Bitcoin ETFs outlined in ProShares’ prospectuses are the Plus Bitcoin ETF, Ultra Bitcoin ETF, UltraShort Bitcoin ETF, Short Bitcoin ETF, and ShortPlus Bitcoin ETF. ProShares Plus Bitcoin ETF and ProShares Ultra Bitcoin ETF target daily returns equivalent to a 1.5x and 2x increase from BGCI’s daily performance, respectively.
The remaining trio—ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF—seek daily returns inversely correlated to the BGCI’s daily performance at -2x, -1x, and -1.5x, respectively. Notably, these funds do not directly engage in shorting Bitcoin, as emphasized by ProShares, clarifying that their objective is to capitalize on Bitcoin price downturns.
At the time of the filing, Bitcoin was trading around $43,000, experiencing a notable decline post the introduction of spot Bitcoin ETFs in the U.S. Market observers, including ARK Invest CEO Cathie Wood, had anticipated a short-term sell-off amid positive news as some investors considered cashing out.
ProShares Seeks SEC Approval for Diverse Bitcoin ETF Lineup Following Spot Market Evolution
This announcement follows the U.S. SEC’s recent approval of the first 10 spot Bitcoin ETFs on January 10, with the inaugural trades commencing on January 11. While ProShares wasn’t among the initial issuers of spot Bitcoin ETFs, the firm had previously focused on futures-based crypto ETFs, notably launching one of the pioneer Bitcoin futures-linked ETFs in October 2021. Their flagship BTC futures-based product, Bitcoin Strategy ETF (BITO), has witnessed substantial growth, briefly surpassing $2 billion in assets under management (AUM) in January 2024.
Beyond BITO, ProShares currently offers the Ether Strategy ETF, Bitcoin & Ether Market Cap Weight Strategy ETF, and the Bitcoin & Ether Equal Weight Strategy ETF.
Leave a comment