ProShares seeks to add more Bitcoin ETPs with five leveraged and short ETF filings
Newly launched spot Bitcoin ETFs are attracting record trading volume from investors with options in the pipeline.
Asset manager ProShares submitted applications for five new leveraged and inverse Bitcoin exchange-traded funds (ETF) with the U.S. Securities and Exchange Commission on Jan. 16.
ProShares ETFs
According to a Jan. 16 filing with the financial regulator, the new ProShares applications consist of the ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF.
The ProShares Plus Bitcoin ETF does not directly invest in Bitcoin. Instead, it aims to achieve daily investment results exceeding one and one-half times the daily performance of the Bloomberg Galaxy Bitcoin Index. Similarly, the ProShares Ultra Bitcoin ETF targets twice the daily performance of the same index.
In contrast, the ProShares UltraShort Bitcoin ETF seeks daily investment results reflecting two times the inverse (-2x) of the daily performance, intending to capitalize on declines in Bitcoin’s price without direct shorting.
Meanwhile, specific details such as tickers and fees remain undisclosed. However, there is speculation of a potential April 1 launch.
Observers have suggested that the market could soon see more of these products. Nate Geraci, the president of ETF Store, said the situation was “quickly getting wild.”
Notably, the new ETF move is coming less than a week after the SEC approved the trading of nine spot Bitcoin ETF applications in the U.S.
NYSE 19b-4 filing
Similarly, the New York Stock Exchange (NYSE) seeks approval for the listing and trading options related to “Commodity-Based Trust Shares” through a recently submitted 19b-4 filing.
A market analyst noted that the NYSE’s move could increase its trading volume and income. This would also help increase liquidity for the new BTC ETFs.
Eric Balchunas, Bloomberg’s senior ETF analyst, further chimed in that the filing would enable the exchange to list options on spot bitcoin ETFs, adding that:
“All three exchanges had to file a 19b-4 (here we go again lol). Earliest approval in 2mo-ish. Commodity trusts like $GLD et al had to do the same thing. Options will likely be a big hit on these given the volatility.”
The SEC approved the listing and trading of spot Bitcoin ETFs under NYSE Arca Rule 8.201-E, which pertains to Commodity-Based Trust Shares. Thus, a rule change to allow options to be traded on NYSE for these shares would affect Bitcoin ETFs.
Bitcoin ETFs attract record volume.
Meanwhile, this development is amidst the significant trading activity th e newly launched spot Bitcoin ETFs attract.
Bloomberg’s data shows that these ETFs have seen a record volume of $10 billion within their first three trading days.
Balchunas pointed out that this volume surpasses the combined trading activity of 500 ETFs introduced in 2023. According to him, BlackRock’s IBIT ETF alone is seeing more trading activity than all the ETFs launched last year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
U.S. non-farm payrolls surge by 165,000 in October, far exceeding expectations! Unemployment rate unexpectedly drops to 4.1%, December rate hike expectations intensify
In October, US non-farm payrolls increased by 165,000, which is 2.5 times the Wall Street median forecast of 65,000 and represents an exceptionally strong deviation of about 5 standard deviations, exceeding the upper limit of all institutional forecast ranges. The unemployment rate unexpectedly fell from 4.2% to 4.1%, while the market had expected it to remain unchanged; average hourly wages also accelerated year-on-year growth to 3.1%. Meanwhile, the previous two months' non-farm payrolls were revised upwards by a total of 84,000. Following the release of the data, the yield on 2-year US Treasury bonds rose by 7 basis points, and the pricing of the probability of a Fed rate hike in December climbed to 70%.
AI Sell-off Hits Anthropic IPO, Potential Valuation Expected to Drop to $1.2–1.3 Trillion
The valuation range discussed by potential investors has been lowered from the previous high of $2 trillion to between $1.2 trillion and $1.3 trillion, and some strategists have even suggested going below $1 trillion to ensure safety. In the face of significant market volatility and financial concerns such as quarterly losses, Anthropic is facing tough decisions, including a discounted valuation, reducing the size of the offering, or postponing the listing.
Crypto prices
More
