The Bitcoin ETF Market in the US Expands with ProShares’ New Application!

  • The Bitcoin ETF market is set to become more diverse with ProShares making new applications.
  • ProShares’ Bitcoin ETFs will cater to different investment strategies, allowing investors to bet on or hedge against Bitcoin’s price movements.
  • RexShares filing applications also indicates a potential increase in such offerings in the market.

ProShares has submitted a new ETF application to the SEC in an effort to diversify the Bitcoin ETF ecosystem: What will this ETF be like?

ProShares Submits a New Bitcoin ETF Application

bitcoin-btc

The Bitcoin ETF market is gearing up to become more diverse with ProShares making new applications. ETF analyst Henry Jim from Bloomberg shares that there are five new Bitcoin ETFs in the pipeline. These ETFs will offer both leveraged and inverse options based on the daily performance of the Bloomberg Galaxy Bitcoin Index.

ProShares’ Bitcoin ETFs will cater to different investment strategies, allowing investors to bet on or hedge against Bitcoin’s price movements. The lineup includes options like ProShares UltraShort Bitcoin ETF (-2x) for those expecting a sharp decline in Bitcoin value and ProShares Ultra Bitcoin ETF (+2x) for those anticipating a significant price increase.

Additionally, they offer options like ProShares ShortPlus Bitcoin ETF (-1.5x) and ProShares Short Bitcoin ETF (-1x) for moderate inverse exposure, and ProShares Plus Bitcoin ETF (+1.5x) for moderate positive exposure. Ticker symbols and fees are yet to be determined, and the launch of these ETFs is scheduled for April 1. Jim has confirmed that this date is not an April Fools’ joke but an actual launch date.

Diverse Bitcoin ETF Market

Eric Balchunas from Bloomberg notes that ProShares is not alone in this endeavor. The fact that RexShares has also filed applications indicates that the market may see an increase in such offerings soon. This news comes against the backdrop of anticipated outflows from the Grayscale Bitcoin Trust (GBTC).

Analyst James Seyffart anticipates approximately $594 million in net outflows from GBTC, suggesting it could be an indication of a strategic reallocation. He also notes that this could be a delayed reaction due to the T+1 settlement process.

Seyffart further highlights the total trading volume of BTC ETPs approaching $10 billion in three days, indicating strong investor activity. The increasing institutional interest and the market’s need for more regulated investment vehicles are putting Bitcoin ETFs in the spotlight. The potential new launches are expected to make the market more diverse.

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