Asset management firm ProShares submitted three new ETFs to the SEC, hoping to use Bitcoin to hedge against dollar risks while investing in the large-cap S&P 500, Nasdaq 100 Index, and Gold.
More fancy crypto ETFs are emerging
As Trump's second presidential term is about to begin, executives and lawyers involved in ETFs say they are developing strategies to cater to all investors' tastes. The range of products they describe is broad, from defensive ETFs aimed at professional fund managers curious about cryptocurrency, to fully speculative bets aimed at 'gamblers'. Bloomberg ETF analysts Eric Balchunas and James Seyffart also estimate that a wave of new cryptocurrency ETFs will emerge in 2025.
(Bloomberg: Various cryptocurrency ETFs will emerge in 2025)
The SEC has approved the Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF before Christmas, which will initially hold both Bitcoin and Ethereum, expected to be listed in January.
Vivek Ramaswamy's asset management firm Strive Asset Management has also submitted an application for the Strive Bitcoin Bond ETF to the SEC, which will track convertible bonds issued for purchasing Bitcoin, essentially a micro-strategy convertible bond ETF.
Bitwise submits Bitcoin Standard Corporations ETF (Bitwise Bitcoin Standard Corporations ETF), investing more than 80% of its net assets in stocks of companies adopting the 'Bitcoin Standard', meaning companies that hold at least 1,000 Bitcoins.
Proshares submits three Bitcoin hedge ETFs
Proshares, an ETF issuer skilled in futures and leveraged operations, has simultaneously submitted three Bitcoin-related ETFs, namely:
S&P 500 Bitcoin ETF
Nasdaq 100 Bitcoin ETF
Gold Bitcoin ETF
As the name suggests, these three ETFs invest in the S&P 500 Index, Nasdaq 100 Index, and Gold.
So what does it have to do with Bitcoin? Since all three ETFs are dollar-denominated investments, the fund will use Bitcoin futures to hedge dollar shorts/Bitcoin longs, and will rebalance monthly to mitigate the impact of dollar value changes relative to Bitcoin.
ETF Store President Nate Geraci believes this is essentially a long position in underlying stocks or gold, then shorting the dollar and going long on BTC using Bitcoin futures, which he refers to as Bitcoin hedge ETFs.
This article about Proshares submitting three Bitcoin hedge ETFs, going long on the stock market gold and hedging dollar risks with BTC first appeared in Chain News ABMedia.
