ProShares, a leading asset manager with over $75 billion in assets, is seeking approval from the SEC to launch three innovative ETFs: the ProShares S&P 500 Bitcoin ETF, ProShares Nasdaq-100 Bitcoin ETF, and ProShares Gold Bitcoin ETF.
These funds aim to track the performance of their respective indices and gold, but with a unique twist—they will measure returns in Bitcoin rather than US dollars. This approach is designed to appeal to investors interested in cryptocurrency exposure while maintaining traditional asset investments.
The ETFs will not directly invest in Bitcoin; instead, they will use Bitcoin futures contracts to achieve returns denominated in Bitcoin. Each fund will hold a long position in its underlying asset while simultaneously taking a short position in US dollars and a long position in Bitcoin through futures contracts. This strategy is intended to hedge against fluctuations in the US dollar’s value relative to Bitcoin.
ProShares plans to allocate up to 25% of total assets in wholly-owned Cayman Islands subsidiaries to comply with US tax regulations. This initiative reflects a broader trend of increasing acceptance of crypto within traditional finance as asset managers explore ways to incorporate Bitcoin into their offerings.
Recently, Strive Asset Management also launched the Strive Bitcoin Bond ETF, further highlighting the growing interest in Bitcoin-related investment products. ProShares is recognized for its innovative strategies and diverse ETF offerings, including leveraged and inverse ETFs.
