ProShares has six ETFs to its name as crypto markets await SEC decision
- Ether ETFs made headlines this week with the release of six different futures products on Monday.
- ProShares Advisors is the name behind all these applications, not leaving it to chance as ETF-related mania continues.
- Meanwhile, the market continues to look to the US SEC for a break after months of delayed decisions.
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ProShares, a renowned advisory firm boasting hundreds of clients has made headlines this with multiple Exchange-Traded Product (ETF) announcement, pointing to a resolution to expand the crypto ETF market.
Also Read: Former BlackRock director estimates Bitcoin spot ETF to be approved by April 2024
ProShares launches multiple ETFS
ProShares Advisors has solidified the presence of Ether (ETH) in the ETF arena, launching six different ETH ETF futures products. Three of the latest are:
- Ether Strategy ETF (EETH),
- Bitcoin & Ether Equal Weight Strategy ETF (BETE), and
- Bitcoin & Ether Market Cap Weight Strategy ETF (BETH)
Notably, these ETF products do not invest in the cryptocurrencies directly, rather, they track their futures contracts. The BETE and BETH ETFs provide exposure to two of the largest cryptos in the world, Bitcoin and Ethereum, which is why the firm launched the combined products.
Citing Strategas Securities ETF and technical strategist Todd Sohn, “It is rare when you get a new asset class to enter into the ETF lexicon.” His words came as he tried to explain why traditional players are jumping into the ETF train, adding:
We’ll see how the asset class performs, but this is a new area for everyone to get involved into, so I think that’s why you’re seeing such popularity with all these releases.
In a statement to CNBC, the firm’s global investment strategist, Simeon Hyman explained that it was ideal to have a regulated futures market in an ETF, adding this would resolve most of the challenges in the space before BTC spot ETFs mature.
The firm is the powerhouse behind the largest Bitcoin futures ETF in the market today, the Bitcoin Strategy ETF (BITO), which trails BTC futures and boasts almost 40% in gains year to date (YTD).
What are the largest spot & futures #Bitcoin ETFs?
— CoinGecko (@coingecko) October 5, 2023
Our study shows that ProShares Bitcoin Strategy ETF (#BITO), which currently holds 35,890 $BTC, is the largest fund in this space.
Check out the full list ⬇️https://t.co/ytQQOpRGQL
Acknowledging this fact, Hyman notes:
We have a full suite of crypto solutions…the largest crypto ETF provider.
Crypto markets still looking to the SEC
Meanwhile, all eyes are peeled to the US Securities and Exchange Commission (SEC) as the financial regulator peruses the ETF applications.
Since the ETF mania began, the only big break happened when a judge decided in favor of Grayscale’s application to have its Bitcoin Trust (GBTC) converted to an ETF. At the time, the markets rallied, with Bitcoin skyrocketing toward the $28,000 mark. It was a big break considering the number of times the commission had rejected similar projects in the past.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
