ethereum/proshares-short-ethereum-etf/#:~:text=ProShares%2C%20one%20of%20the%20biggest,Linked%20ETF%E2%80%9D%20on%20November%202.” rel=”nofollow noopener” target=”_blank”>ProShares Asset Manager seeks to gain an advantage in the market, as suggested by its latest bitcoin ETF filing with the crypto/sec-announcement-crypto/#:~:text=What%20The%20SEC’s%20Latest%20Announcement%20Means%20For%20The%20Crypto%20Industry,-by%20Scott%20Matherson&text=A%20recent%20announcement%20by%20the,actions%20have%20had%20on%20it.” rel=”nofollow noopener” target=”_blank”>National stock market Commission (SECOND). This comes as its btc futures ETF appears to have lost a significant number of investors to the Recently launched Spot btc ETFs.
ProShares Files for 5 Inverse and Leveraged bitcoin ETFs
According to the file, these ethereum/proshares-short-ethereum-etf/#:~:text=ProShares%2C%20one%20of%20the%20biggest,Linked%20ETF%E2%80%9D%20on%20November%202.” rel=”nofollow noopener” target=”_blank”>Inverse and Leveraged ETFs will track the daily performance of the Bloomberg Galaxy bitcoin Index. Of the five ETFs, three are inverse: ProShares UltraShort bitcoin ETF, ProShares ShortPlus bitcoin ETF, and ProShares Short btc ETF. As noted in the presentation, these funds will not be sold directly short btc but they only seek to benefit from price drops.
Meanwhile, the leveraged ETFs are called ProShares Plus bitcoin ETF and ProShares Ultra bitcoin ETF. Like inverse ETFs, these funds will also not invest directly in btc, but will only seek to benefit from significant price changes in its price. ProShares is a major player when it comes to offering cryptocurrency-related ETFs.
The firm turned out to be the first in launch a btc futures ETF (ProShares bitcoin Strategy (BITO). They also launched the first ETF that tracked the performance of ethereum. This also won't be the first time the asset manager has looked to offer an inverse ETF, as it already offer investment funds which aim to benefit from drops in btc and ethereum prices.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Move-Over-Spot-Bitcoin-ETFs-ProShares-Files-for-5-Inverse" alt="Tradingview.com bitcoin Price Chart (ProShares ETF)” width=”3266″ height=”1530″/>
btc price at $42,500 | Source BTCUSD on Tradingview.com
A Plausible Reason for ProShares' Latest Move
Nate Geracipresident of the ETF store, gave his opinion on what could be the reason for ProShares' latest move as it predicts that BITO could slowly bleed to death. As such, ProShares is reporting these leveraged and inverse ETFs, which Geraci says are its bread and butter.
In fact, the ProShares Futures bitcoin ETF may already be bleeding, as indicated in a recent comment by Bloomberg analyst Eric Balchunas. He highlighted that BITO broke its all-time volume record with $2 billion traded on the same day the bitcoin Spot ETFs were launched. However, he went on to suggest that the redemptions could have represented some of the transactions in which investors moved their funds into a Spot btc ETF.
A K33 report last year bitcoin/institutional-investors-spot-etf/” rel=”nofollow noopener” target=”_blank”>foretold that bitcoin futures ETFs may not have the same appeal as before following the launch of btc spot ETFs. Geraci also shares similar sentiments when fixed that there was no “real need” for these funds now that “the real thing exists.” He made this comment while revealing that VanEck was closing your btc futures ETF.
Featured image from ETF Trends, chart from Tradingview.com