The exchange-traded fund issuer ProShares has introduced five new Bitcoin-based ETFs, with which it seeks to diversify participation in the cryptocurrency market.
ProShares' new leveraged and inverse Bitcoin exchange-traded funds offer investors indirect exposure to the price of BTC, the market-leading cryptocurrency.
This series of new Bitcoin ETFs, according to the document submitted to the Securities and Exchange Commission (SEC), will replicate the daily performance reflected in the Bloomberg Galaxy Bitcoin Index and will allow investors to access various alternatives to satisfy their preferences regarding investment in the cryptocurrency.
ProShares he presented the request for authorization of these funds to the SEC a few days after the securities regulator approved the listing of 11 Bitcoin Spot Exchange Traded Funds.
According to said Bloomberg ETF expert Eric Balchunas said RexShares made a similar request to the regulatory agency a few days ago, indicating that ETF providers are looking for ways to expand their investors' exposure to the crypto world through leveraged and inverse products, taking advantage of the recent integration of cryptocurrencies into traditional exchanges and markets.
Leveraged ETFs and inverse ETFs, also known as “short” ETFs, can offer higher returns than the underlying index they track. However, they also entail higher risks for investors, so experts point out that ProShares’ introduction of these Bitcoin-leveraged investment products is aimed at meeting the demands and preferences of a group of investors with a high appetite for risk.
Even so, Balchunas estimates that, in the coming months, the market will receive up to a dozen more of this type of investment funds.
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