ProShares Files Prospectus for Leveraged and Inverse Bitcoin ETFs
ProShares has recently filed prospectus materials for five leveraged and inverse bitcoin exchange-traded funds (ETFs). The names of these funds are ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, Proshares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF.
According to the prospectus materials, one of the funds aims to achieve daily investment results that correspond to two times (2x) the daily performance of the Bloomberg Galaxy Bitcoin Index. However, two of the funds do not directly invest in bitcoin, and three do not directly short bitcoin.
This move by ProShares follows the recent approval of 11 spot bitcoin ETFs by the Securities and Exchange Commission (SEC), which have generated significant trading volume since their launch on January 11. Vanguard has stated that it will not offer spot bitcoin ETFs due to concerns about bitcoin’s high volatility.
Others File Parallel Spot Bitcoin Products
The New York Stock Exchange has filed a 19b-4 to allow for the listing and trading of options on Commodity-Based Trust Shares. This filing is for the purpose of listing options on spot bitcoin ETFs, according to Bloomberg Intelligence senior ETF analyst Eric Balchunas.
In addition, Grayscale Investments has filed for a covered call ETF that seeks to generate income from its converted GBTC position.
Hot Take: ProShares Expands Bitcoin Investment Options with Leveraged and Inverse ETFs
ProShares’ filing of prospectus materials for leveraged and inverse bitcoin ETFs demonstrates the growing demand for diverse investment options in the crypto market. With these new funds, investors can now gain exposure to bitcoin with leverage or hedge their positions through inverse ETFs.
The approval of spot bitcoin ETFs by the SEC has paved the way for increased institutional interest and significant trading volume. However, not all investment platforms, such as Vanguard, are offering these products due to concerns about bitcoin’s volatility.
As the crypto market continues to evolve, we can expect more innovative investment products like options on spot bitcoin ETFs and covered call ETFs to emerge, providing investors with even more opportunities to participate in the digital asset space.
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