ProShares LLC, a renowned provider of exchange-traded funds (ETFs), has made significant strides in the cryptocurrency market by filing prospectus materials for five leveraged and inverse bitcoin ETFs. This move comes in the wake of the recent approval of 11 spot bitcoin ETFs by the Securities and Exchange Commission (SEC) and the subsequent commencement of trading on January 11.
The proposed ETFs by ProShares encompass a range of investment strategies, including leverage, inverse exposure, and tracking specific benchmarks such as the Bloomberg Galaxy Bitcoin Index. Among the five funds are the ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF.
It’s noteworthy that while some of these funds seek to track the performance of bitcoin, others do not directly invest in the cryptocurrency, and three of them do not directly short bitcoin, as specified in ProShares’ filing with the SEC.
Nate Geraci, the president of investment advisor The ETF Store, expressed his surprise and speculated on the rapid developments, highlighting a Twitter post by commenting on ProShares’ prospectus. He remarked on the unlikely possibility of these ETFs being available on Vanguard’s platform, referencing Vanguard’s decision not to offer spot bitcoin ETFs due to concerns over the cryptocurrency’s high volatility.
In parallel developments, the New York Stock Exchange has filed a 19b-4 to enable the listing and trading of options on Commodity-Based Trust Shares, a move that Bloomberg Intelligence senior ETF analyst Eric Balchunas believes is intended for listing options on spot bitcoin ETFs.
Furthermore, Grayscale Investments has submitted a filing for a covered call ETF, aimed at generating income from a position in its converted GBTC. This move signifies a growing interest and investment in cryptocurrency-related products, particularly in the aftermath of the recent approval and introduction of spot bitcoin ETFs.
These recent actions by ProShares, the New York Stock Exchange, and Grayscale Investments reflect the evolving landscape of the cryptocurrency market and the increasing integration of digital assets within traditional financial instruments. As institutional and retail interest in cryptocurrencies continues to grow, the emergence of these new investment products further diversifies the avenues for exposure to the digital asset space.
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