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ProShares Files for 'Hedged' Bitcoin ETF Products: Details

Published 12/28/2024, 09:00 AM
Updated 12/28/2024, 01:00 PM
© Reuters.  ProShares Files for \'Hedged\' Bitcoin ETF Products: Details
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U.Today - American ETP issuer ProShares has made another decisive move to expand its Bitcoin ETF products suite. The asset manager has applied to list three new Bitcoin-linked ETF products, with stock market native products as reserves. These filings come amid growing consideration of more leniency in U.S. SEC approvals next year with a new Chairman set to take office.

ProShares Bitcoin ETF filings

Per an update from ETF Store President Nate Geraci, the three filings from ProShares include the S&P 500 Bitcoin ETF, the Nasdaq-100 Bitcoin ETF and the Gold Bitcoin ETF, respectively.

Nate Geraci states these products are long in the underlying stocks or gold. These would now feature a short USD and long Bitcoin position using Bitcoin Futures offerings. The dual-faced model of these new ETFs made him call the prospective offerings "BTC hedged ETFs."

Since spot Bitcoin and Ethereum ETF products secured approval from the U.S. SEC, there has been no slowing down in the number of filings.

While the number of crypto ETFs like Litecoin, Hedera, Solana and XRP ETF products has grown, asset managers are also intensifying how these offerings target traditional finance products more closely.

Geraci aptly observed that "Bitcoin is starting to eat tradfi."

Year of crypto Wall Street takeover

The timing of the current filing has triggered commentary from market experts on how unrelenting ETF issuers are in driving more reach for the product. Beyond the $5,500 Ethereum price forecast from Galaxy Digital (TSX:GLXY), the firm also issued a major ETF adoption prediction.

As noted, at least one big asset manager will allocate 2% of its Assets Under Management (AuM) to Bitcoin, underscoring the potential for the asset to go mainstream on Wall Street.

Already, many traditional firms are buying Bitcoin through ETFs, complementing the unrelenting acquisitions from spot buyers like MicroStrategy.

This article was originally published on U.Today

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