Bitcoin futures ETF provider ProShares has wasted no time responding to the recent approval of spot Bitcoin ETFs in the United States. Six days after the green light for spot Bitcoin ETF trading, ProShares submitted a comprehensive application to the United States Securities and Exchange Commission (SEC) outlining its intent to introduce three short and two long Bitcoin ETFs.
The filing, made on Tuesday, January 16, outlines ProShares’ plan to introduce leveraged and inverse Bitcoin ETFs, aiming to derive daily investment returns from Bitcoin price fluctuations. The performance of these unique ETFs will be tied to the day-to-day movements of the Bloomberg Galaxy Bitcoin Index (BGCI).
ProShares has proposed five distinctive Bitcoin ETFs in its prospectuses, namely the Ultra Bitcoin ETF, Plus Bitcoin ETF, UltraShort Bitcoin ETF, ShortPlus Bitcoin ETF, and ProShares UltraShort Bitcoin. Notably, the Ultra Bitcoin ETF and Plus Bitcoin ETF are designed to achieve daily investment outcomes equivalent to 1.5x and 2x growth, respectively, based on the daily performance of BGCI.
On the other hand, the three inverse ETFs, namely ProShares Short Bitcoin ETF, ProShares ShortPlus Bitcoin ETF, and ProShares UltraShort Bitcoin are structured to deliver daily investment outcomes inversely correlated to the daily performance of BGCI, ranging from -1x to -2x.
Importantly, ProShares emphasized that these ETFs do not directly short Bitcoin (BTC), clarifying that their strategy aims to capitalize on potential declines in the price of the world’s largest cryptocurrency.
As of the latest market data, Bitcoin is currently valued at approximately $42,605, representing a 1.27% decrease from the previous day’s closing price and a 13% decline from its recent peak on Thursday.
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