Proshares submits Bitcoin hedge ETF to SEC! Long on stocks and gold while using BTC to hedge against dollar risks

The cryptocurrency circle (120BTC.CoM) reported: Asset management company ProShares has submitted three new types of ETFs to the U.S. Securities and Exchange Commission (SEC), hoping to use Bitcoin to hedge against the risks of the dollar, investing in the U.S. 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, senior participants in the ETF and lawyers say they are formulating strategies to cater to all investors' tastes. They describe a wide range of products, from defensive ETFs aimed at professional fund managers curious about cryptocurrencies to fully speculative bets aimed at 'gamblers'. Bloomberg ETF analysts Eric Balchunas and James Seyffart also predict that a wave of new cryptocurrency ETFs will emerge in 2025.

The SEC approved the Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF before Christmas. They will initially hold both Bitcoin and Ether and are expected to be listed in January.

Vivek Ramaswamy's asset management company Strive Asset Management has also submitted an application to the SEC for the Strive Bitcoin Bond ETF, which will track convertible bonds issued for purchasing Bitcoin, essentially a micro-strategy convertible bond ETF.

Bitwise has submitted the Bitwise Bitcoin Standard Corporations ETF, which invests more than 80% of its net assets in stocks of companies that adopt 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 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 are investments in the U.S. S&P 500 index, Nasdaq 100 index, and gold.

So what does it have to do with Bitcoin? Since the three ETFs are all dollar-denominated, the fund will use Bitcoin futures to hedge against a short position in dollars and a long position in Bitcoin, and will rebalance monthly, hoping to mitigate the impact of changes in the value of the dollar relative to Bitcoin.

Nate Geraci, president of ETFStore, believes this is basically a long position in the underlying stocks or gold, while using Bitcoin futures to short the dollar and long BTC. He refers to these as Bitcoin hedge ETFs.