The Bitcoin exchange-traded fund (ETF) space is growing by the day as US-based ETF issuer ProShares has made a series of new filings for leveraged and inverse Bitcoin ETFs. The new products come only a week after the first-ever spot Bitcoin ETFs began trading.
ProShares Seeks Approval for Five New Bitcoin ETFs
ProShares Files Prospectus Materials With the SEC for Five New Bitcoin ETFs.
According to Bloomberg’s ETF analyst Henry Jim, the company managing assets worth $3 billion through 142 ETFs trading on the US markets has filed prospectus materials with the Securities and Exchange Commission (SEC) for five Bitcoin-focused exchange-traded funds.
They are; ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF.
ProShares’ upcoming Bitcoin ETFs offer both leveraged and inverse options based on the daily performance of the Bloomberg Galaxy Bitcoin Index, with one fund specifically seeking daily investment results and before fees and expenses corresponding to two times (2x) of that of the benchmark index measuring the performance of a single BTC traded in the US.
Two of the five funds don’t directly invest in Bitcoin, and three of them do not directly short the leading cryptocurrency, clarified the ETF issuer in its filing. Moreover, ProShares’ Bitcoin ETFs will cater to different investment strategies, enabling investors to either bet on or against Bitcoin’s price movements.
ProShares Unveils Dual-Option Bitcoin ETFs
ProShares Upcoming ETFs Allow Investors to Either Bet On or Against Bitcoin Prices
The ProShares UltraShort Bitcoin ETF offers double the inverse exposure (-2x) for those expecting Bitcoin’s price to drop sharply, while the ProShares Ultra Bitcoin ETF provides doubled the exposure (2x) for those anticipating a significant increase in the value of Bitcoin.
The ProShares ShortPlus Bitcoin ETF (-1.5x) and the ProShares Short Bitcoin ETF (-1x) offer moderate inverse exposure. Meanwhile, the ProShares Plus Bitcoin ETF (1.5x) is for investors focusing on moderate positive exposure to Bitcoin prices.
The details on the tickers and fees for the exchange-traded funds are yet to be finalized. ProShares has set a launch date of April 1, 2024, for the ETFs.
Bitcoin Spot ETFs Amass $10 Billion in Trading Volume Within Three Days.
ProShares’ latest filings come just days after the SEC approved 11 spot Bitcoin ETFs in the US, which began trading on January 11. According to reports, the total trading volume of Bitcoin spot ETFs in the US has reached close to a staggering $10 billion in just three days.
During this period, three funds stood out in particular; the Grayscale Bitcoin Trust (GBTC) by crypto asset manager Grayscale with a trading volume of $5.17 billion, BlackRock’s iShares Bitcoin Trust (IBIT) recording a trading volume of $1.99 billion, and Fidelity’s Bitcoin spot ETF – the Fidelity Wise Origin Bitcoin Fund (FBTC) – which saw $1.47 billion in trading volume in three days.
The funds had a cumulative trading volume of $9.77 billion, signaling the growing institutional and retail demand for crypto-focused investment products under a more regulated environment.
More Bitcoin ETFs Expected to Trade
A Dozen More Bitcoin ETFs Expected to Trade in the Coming Months, Says Analysts.
ProShares wasn’t the only one applying for new Bitcoin ETFs. Bloomberg’s senior market analyst Eric Balchunas noted that ETF provider RexShares also submitted filings for a “bunch” of Bitcoin exchange-traded products “a few weeks ago”. He believes that there could be up to a dozen new Bitcoin ETFs on the market in the coming months.
In the meantime, the New York Stock Exchange (NYSE) filed a 19b-4 with the SEC seeking permission for listing and trading options on commodity-based trust shares, as some of the new Bitcoin spot ETFs are structured.
Blachunas replied to the news in an X post saying the filing was made to be able to list options on spot Bitcoin ETFs. He expects the proposal to be approved in two months and believes options will be a “big hit” given the crypto market’s volatility.
Last week, Grayscale also filed for a so-called covered call ETF that seeks to generate income from a position in the GBTC – which was converted from a futures-market ETF to a spot-traded ETF on January 10 and is listed on the NYSE Arca.
Bitcoin Facing Intense Selling Pressure
Bitcoin Facing Intense Selling Pressure on the Back of Spot ETF Approval.
BTC price has come under strong selling pressure ever since the launch of the spot Bitcoin ETFs. According to a report by blockchain intelligence firm Santiment, crypto wallets with large BTC balances have been actively moving older coins, resulting in a significant decrease in the average age of Bitcoin that is in circulation.
Although this trend has seemingly come to a halt for now, it has the potential to stop the current bull cycle in the crypto market, claimed experts.
At the time of writing, Bitcoin (BTC) is changing hands at $42,808 – down 0.1% in the last 24 hours.