ProShares Plans to Launch Five New Bitcoin ETFs Amid Spot Trading Debut
Summary:
ProShares, a prominent US issuer of exchange-traded funds, plans to launch five new Bitcoin ETFs with indirect BTC exposure amid the start of spot Bitcoin ETF trading. According to a filing with the U.S. Securities and Exchange Commission, these ETFs aim to benefit from Bitcoin price fluctuations and include Plus Bitcoin ETF, Ultra Bitcoin ETF, UltraShort Bitcoin ETF, Short Bitcoin ETF, and ShortPlus Bitcoin ETF. These plans were drawn up shortly after the approval of the first ten spot Bitcoin ETFs on January 10 and continue ProShares focus on futures-based crypto ETFs.
A leading issuer of Exchange-traded funds (ETFs) in the US, ProShares, is planning to introduce several Bitcoin ETFs with indirect Bitcoin exposure amidst the start of spot Bitcoin ETF trading on local equity exchanges. As per a filing submitted to the US Securities and Exchange Commission (SEC) on January 16, ProShares is aiming to debut leveraged and inverse Bitcoin ETFs. The ETFs will look for daily investment results from Bitcoin price fluctuations according to the Bloomberg Galaxy Bitcoin Index (BGCI) daily performance. ProShares plans to launch five notable Bitcoin ETFs, including the Plus Bitcoin ETF, Ultra Bitcoin ETF, UltraShort Bitcoin ETF, Short Bitcoin ETF, and ShortPlus Bitcoin ETF as stated in the company's prospectus.
ProShares Plus Bitcoin ETF and ProShares Ultra Bitcoin ETF are designed to seek daily investment results that match a 1.5x and 2x rise from the BGCI's daily performance, respectively. Meanwhile, the ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF are set to seek daily investment results reflecting the inverse of the BGCI's daily performance of -2x, -1x, and -1.5x, respectively. Despite this, ProShares clarified in the filing that these funds wouldn't directly short Bitcoin but instead aim to profit from a decrease in Bitcoin price.
At the time of submission, Bitcoin was valued around $43,000 and underwent a major slump following the United States' debut of spot Bitcoin ETFs. Industry investors, such as ARK Invest CEO Cathie Wood, had previously suggested that a short-term sell-off is likely due to some investors wanting to monetize amidst favorable news.
ProShares submitted the said filing shortly after the US SEC gave green light to the country's first ten spot Bitcoin ETFs on January 10, marking the start of trading on January 11. However, ProShares was not among the issuers of the first batch of spot Bitcoin ETFs.
Focused on futures-based crypto ETFs, ProShares previously launched one of the first Bitcoin futures-linked ETFs in the US the preceding October. The firm's premium Bitcoin futures-based offering, the Bitcoin Strategy ETF (BITO), has enjoyed substantial growth in recent months, briefly touching $2 billion in assets under management (AUM) for the first time in January 2024.
Besides BITO, ProShares also currently provides Ether Strategy ETF (EETH), Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), and Bitcoin & Ether Equal Weight Strategy ETF (BETE).
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Published At
1/17/2024 2:59:50 PM
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