Issuer of exchange-traded funds (ETFs), ProShares launched two new ETF products–ProShares Ultra Bitcoin ETF (BITU), designed to track the asset’s intraday 2x returns, and ProShares UltraShort Bitcoin ETF (SBIT), which tracks the cryptocurrency’s intraday -2x returns, making it the first ETF of its kind in the market.
The ETFs utilize derivatives such as swap agreements, futures contracts, and similar instruments to attain indirect exposure to BTC and ETH.
Both Listed on the New York Stock Exchange, the new ETFs serve investors interested in leveraged or short Bitcoin exposure through the accessibility, convenience, and efficiency offered by an ETF.
Michael Sapir, CEO of ProShares, explained the rationale behind BITU and SBIT, highlighting their purpose in tackling the complexities associated with gaining leveraged or short exposure to Bitcoin. He emphasized that BITU allows investors to pursue amplified Bitcoin returns or manage exposure with reduced financial risk. Meanwhile, SBIT enables investors to capitalize on downward movements in Bitcoin’s price or protect against losses from Bitcoin exposure fluctuations.
ProShares Files Prospectus for Five Leveraged and Inverse Bitcoin ETFs
ProShares is recognized for issuing leveraged and inverse ETFs alongside its offerings of cryptocurrency-related ETFs, highlighted by the launch of the first United States Bitcoin-linked ETF (BITO) in 2021. Currently, the company offers an extensive array of ETFs, managing assets exceeding $70 billion.
ProShares submitted prospectus materials to the Securities and Exchange Commission (SEC) for five leveraged and inverse Bitcoin ETFs, comprisng ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, Proshares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF in January. This filing closely followed the company’s approval of the spot Bitcoin ETF launch by the SEC and ten other issuers authorized to conduct trading on the exchanges in the United States.
Meanwhile, as of the time of writing, Bitcoin is trading at $66,113.02, showing a decline of over 4% during the preceding 24-hour period, according to CoinMarketCap data. Conversely, its trading volume surged by 79% to $49 billion within the same timeframe. The cryptocurrency currently holds a market capitalization of $1.30 trillion.
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