Bethesda-based ProShares to Launch New Crypto ETFs
Bethesda, Maryland-based ProShares is expanding its product line with the launch of three new exchange-traded funds (ETFs) on October 2, 2023. One of the new ETFs, the ProShares Ether Strategy ETF (EETH), will be the first ETF designed to track the performance of ether, the second-largest cryptocurrency by market capitalization. Additionally, ProShares is introducing two blended ETFs that provide exposure to both bitcoin and ether.
ProShares: A Leader in the ETF Industry
ProShares has been a prominent player in the ETF industry since its establishment in 2006. With over $60 billion in managed assets, the firm has excelled in various investment strategies, including crypto, dividend growth, and geared ETFs.
A Milestone for Cryptocurrency Investments
The launch of these new ETFs marks a significant milestone in the maturation of the cryptocurrency market. Building on their previous successes with BITO and BITI, ProShares aims to further legitimize cryptocurrency investments and attract institutional investors.
Meeting Investor Demand for Crypto-Linked ETFs
Michael L. Sapir, CEO of ProShares, emphasized the growing demand for crypto-linked ETFs. He cited the success of their bitcoin-linked ETF, BITO, which has amassed over $2 billion in net inflows and become the largest globally. Sapir stated that the launch of EETH is a response to investor demand for a regulated financial product targeting ether.
Diversification with Blended ETFs
In addition to EETH, ProShares is diversifying its offerings with two other ETFs: Bitcoin & Ether Equal Weight Strategy ETF (BETE) and Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). BETE will rebalance monthly to maintain a 50/50 weighting between bitcoin and ether, while BETH will adjust holdings based on the market capitalization of the two cryptocurrencies.
Accessibility and Simplified Investing
One advantage of these new ETFs is their accessibility through traditional brokerage accounts, eliminating the need for separate crypto custodians or wallets. This appeals to investors interested in cryptocurrencies but concerned about custody risks or the complexities of direct purchases.
Futures-Based Investment Approach
Unlike some other investment vehicles, these ETFs primarily invest in ether and bitcoin futures rather than directly holding the cryptocurrencies. ProShares’ research shows that these futures have historically displayed a .99 correlation with their respective cryptocurrencies, offering close tracking of the underlying assets.
Hot Take: ProShares Expands Crypto ETF Lineup, Boosting Mainstream Adoption
Bethesda-based asset management firm ProShares is making strides in the cryptocurrency market with its upcoming launch of three new exchange-traded funds (ETFs), including the pioneering ProShares Ether Strategy ETF (EETH). These ETFs, which provide exposure to bitcoin and ether, aim to attract institutional investors while simplifying access to cryptocurrency investments for individual investors. By offering regulated financial products that track the performance of leading cryptocurrencies, ProShares is further legitimizing digital assets and contributing to their mainstream adoption.
By
By
By
By
By