ProShares Intends to Offer Stock, Gold, and Bitcoin Futures in a Single Stock Exposure to Bitcoin
New ProShares ETFs to Hedge Against Volatility in the Dollar to Provide Access to Bitcoin Markets.
U.S. Bitcoin ETF market reaches 36 billion dollars as ProShares files for SEC's approval of groundbreaking Bitcoin hedges.
ProShares has applied with the U.S. Securities and Exchange Commission (SEC) to launch a new range of hedge Bitcoin exchange-traded funds (ETFs). These U.S.-based ETFs will provide Bitcoin exposure using novel strategies that include long positions in the S&P 500, Nasdaq 100, gold, and Bitcoin futures.
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This step is one of several in the U.S. market, where the appetite for cryptocurrency products that allow people to invest in crypto assets is booming.
The Bitcoin hedge ETFs from ProShares will employ a different strategy. These people will be long-popular things like the S&P 500, Nasdaq 100, or gold, and they will sell the U.S. dollar short. These ETFs also selected long positions in Bitcoin through Bitcoin futures.
By offering both direct exposure to the price of Bitcoin and the increased external performance of equity indices, since these funds offer indirect exposure to Bitcoin’s and gold’s prices, it aims to allow investors to invest without getting all of their cash stymied in BItcoin.
Utilizing this strategy, the ETFs provide an alternative to hedging against changes in the value of the U.S. dollar while producing capital appreciation—or downside protection, depending on Bitcoin's future price performance.
This proposal for Bitcoin hedge ETFs follows a surge in activity in the US Bitcoin ETF market. In January, 11 spot Bitcoin ETFs were launched in the U.S., which was seen as a watershed moment for cryptocurrency financial products.
These ETFs have collectively attracted more than $36 billion in investor capital. Such companies provide an indirect way for investors to get exposure to Bitcoin without directly owning or holding the digital asset. The expansion of these products continues to indicate an emerging conscious interest in Bitcoin as an asset class.
Volatility Shares has also filed to launch an ETF with exposure to Solana futures, in addition to the ProShares filing. The new fund enables investors to take leveraged long or short positions on the future price of Solana, giving 1x, 2x , and -1x exposure to the cryptocurrency.
The launch of such products underscores the increasing intertwining of digital assets, including Bitcoin and Solana, with traditional financial markets as more investment vehicles come to market to accommodate the growing demand for exposure to cryptocurrency.
