In a noteworthy development, ProShares, a major player in the Bitcoin Exchange-Traded Fund (ETF) landscape, has submitted applications for five new leveraged and inverse Bitcoin ETFs. This follows closely on the heels of the U.S. Securities and Exchange Commission (SEC) giving the green light to 11 spot Bitcoin ETFs.
The proposed funds are the ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF. One of these funds is designed to deliver daily investment outcomes that mirror double the daily performance of the Bloomberg Galaxy Bitcoin Index.
In contrast to some spot Bitcoin ETFs, two of the funds proposed by ProShares do not invest directly in Bitcoin, and three do not take a direct short position on the cryptocurrency. This indirect method of Bitcoin investment could provide investors with a novel way to participate in the cryptocurrency market.
The Bitcoin ETFs that were recently approved have seen almost $10 billion in total trades in just over three days. Eric Balchunas, a Bloomberg analyst, compared the trading volume of these newly launched funds with other ETFs that were launched last year.
NYSE’s Initiative to Broaden the Market for Financial Instruments
In a parallel development, the New York Stock Exchange has submitted a 19b-4 form, seeking approval for the listing and trading of options on Commodity-Based Trust Shares, specifically for spot Bitcoin ETFs. This initiative aims to broaden the market for these financial instruments.
Grayscale Investments has also thrown its hat in the ring by filing for a covered call ETF. This new ETF aims to generate income from a position in its converted GBTC (Grayscale Bitcoin Trust), adding another layer to the diverse array of Bitcoin-related investment products entering the market.
The launch of these new funds by ProShares signifies a substantial expansion in the Bitcoin ETF market. It offers investors more avenues to gain exposure to Bitcoin’s price fluctuations, whether they expect an upward or downward trend.
As the cryptocurrency market continues to evolve, the availability of such a wide range of investment products is expected to draw more institutional investors, thereby further propelling the market’s growth and stability.
