ProShares launches first 2x and -2x leveraged bitcoin ETFs
ETF provider ProShares launched the first leveraged bitcoin ETFs (Exchange Traded Funds) last week.
BITU will target 2x daily bitcoin returns, and SBIT, an inverse leveraged ETF, will target -2x daily bitcoin returns.
In his press release, ProShares CEO Michael L. Sapir said that 'BITU and SBIT are designed to address the challenge of acquiring leveraged or short exposure to bitcoin', while offering 'the opportunity to pursue magnified bitcoin returns or aim for a level of exposure with less money at risk.'
ProShares gained prominence in the crypto space with the launch of the first bitcoin futures ETF in October 2021.
Spot bitcoin ETF trading volumes nearly triple in March
As reported by The Block, the cumulative trading volume of spot bitcoin ETFs reached $111 billion in March, nearly triple the $42 billion in February, showing growing interest in these instruments as a way to gain exposure to bitcoin.
It's been almost three months since bitcoin spot ETFs were launched. BlackRock's IBIT, Fidelity's FBTC and Grayscale's GBTC continue to dominate daily trading volumes, with the latter (GBTC) being predominantly exits.
Since GBTC became a spot bitcoin ETF, its bitcoin holdings have fallen 46%, from around 619,000 BTC to 333,619 BTC. BlackRock's IBIT recently crossed the 250,000 mark in bitcoin holdings, with Fidelity's FBTC holding just below 150,000 BTC.
Overall, the 11 US spot bitcoin ETFs hold about 840,000 BTC, about 4.25% of the current circulating supply.
