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 the 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.
