Popular ETF provider ProShares has applied for an innovative series of exchange-traded funds (ETFs) that provide exposure to traditional financial assets while incorporating Bitcoin 
$94,743 protection. The proposed ETFs will track the performance of the S&P 500, Nasdaq-100, and gold, along with integrating Bitcoin futures.
Demand for Bitcoin-Backed ETFs Increases
According to the SEC filing, these Bitcoin-protected ETFs will combine long positions in underlying stocks or gold with short positions in USD and long positions in Bitcoin futures contracts. Through this strategy, ProShares aims to capitalize on Bitcoin’s potential as an alternative asset while providing exposure to traditional financial markets. It is important to note that the fund does not invest directly in Bitcoin.
The SEC filing indicates that the short USD/long Bitcoin strategy is executed by investing in futures contracts for Bitcoin. This approach provides currency protection against USD exposure tied to S&P 500 stock positions. The protection aims to mitigate the effects of fluctuations in the value of the USD relative to Bitcoin and is reset monthly.
Recent Applications
ProShares’ latest application reflects increasing market confidence in Bitcoin. In particular, following the application of the Bitwise Bitcoin Standard Company ETF, REX proposed a new ETF aimed at investing in convertible bonds issued by companies holding Bitcoin in their corporate treasuries. This fund, named the “Bitcoin Corporate Treasury Convertible Bond ETF,” provides exposure to companies like MicroStrategy, Marathon Digital, and Metaplanet.
The fund commits to investing at least 80% of its net assets, including debts, in these specific convertible bonds. This structure offers investors exposure to convertible bond offerings from companies operating in the Bitcoin space rather than direct investments in stocks or cryptocurrencies.
Following Donald Trump’s election victory last month, inflows into spot BTC ETFs have surged, and an increase in Bitcoin’s market adoption is anticipated. Total inflows since inception have exceeded $35.6 billion, with BlackRock’s IBIT product alone receiving over $37 billion in inflows.
The incoming applications and market reactions indicate that Bitcoin is increasingly finding its place among financial instruments. Investors continue to evaluate the integration of digital assets into traditional markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
