ProShares Makes Decisive Move to Expand Bitcoin ETF Products Suite

American ETP issuer ProShares has made another decisive move to expand its Bitcoin ETF products suite.

American exchange-traded product (ETP) issuer ProShares has made another decisive move to expand its Bitcoin ETF products suite. The asset manager has applied to list three new Bitcoin-linked ETF products, with stock market native products as reserves.

These filings come amid growing consideration of more leniency in U.S. Securities and Exchange Commission (SEC) approvals next year as a new Chairman prepares to take office.

ProShares Bitcoin ETF filings

According to regulatory filings on Friday, ProShares is looking to launch three new Bitcoin ETFs that will be bullish on the apex crypto while also hedging against the U.S. dollar. These filings follow the recent approval of several Bitcoin futures ETFs by the SEC.

The filings show that the three ETFs will be actively managed and will invest in a portfolio of Bitcoin futures contracts. The ETFs will also use a rolling futures strategy to maintain exposure to the near-month Bitcoin futures contract.

Importantly, two of the ETFs will have a portion of their net assets invested in the SPDR S&P 500 ETF Trust (SPY) or the iShares Core U.S. Total Bond Market ETF (AGG), while another ETF will be fully invested in the SPDR Gold Shares ETF (GLD). At the same time, each ETF will maintain a short USD and long Bitcoin position using Bitcoin futures offerings.

These products are ultimately designed to be bullish on Bitcoin in the long term while also hedging against short-term market movements and downtrends in the stock or gold markets.

As the filings show, the 'ProShares Bitcoin Strategy ETF' will maintain a long exposure to Bitcoin of between 90% to 100% of its net assets. At the same time, the ETF will be short USD and long S&P 500 for the remaining net asset exposure.

Meanwhile, the 'ProShares Bitcoin Hedged ETF' will maintain a long Bitcoin exposure of 75% to 95%, with the remaining net assets being short USD and long U.S. Total Bond.

Lastly, the 'ProShares Gold Bitcoin ETF' will maintain a long Bitcoin exposure of 75% to 95%, with the remaining net assets being short USD and long Gold.

These filings come as no surprise, especially given the recent bullish performance of Bitcoin in the markets. Notably, Bitcoin has rallied by over 120% this year, outperforming several other asset classes.

As such, several asset managers and ETP issuers are looking to capitalize on this growing interest in Bitcoin among mainstream investors. In fact, several applications to list Bitcoin ETFs are still pending before the SEC.

However, these three new Bitcoin ETFs from ProShares are unique in their own way. While several other Bitcoin ETFs are already available in the markets, these upcoming ETFs will be the first to offer a dual exposure to both Bitcoin and another traditional finance product.

Highlighting the essence of these upcoming ETFs, Nate Geraci of The ETF Store states that these products are ultimately "long in the underlying stocks or gold. These would now feature a short USD and long Bitcoin position using Bitcoin Futures offerings. The dual-faced model of these new ETFs made him call the prospective offerings "BTC hedged ETFs."

As Geraci points out, these upcoming ETFs will be bullish on Bitcoin in the long term, thanks to the majority exposure to the apex crypto. At the same good time, the short USD and long stock market native product exposure will help hedge against any short-term downtrends in the Bitcoin market.

Bitcoin ETFs gaining ground

Ever since spot Bitcoin and Ethereum ETF products secured approval from the U.S. Securities and Exchange Commission (SEC), there has been no slowing down in the number of filings.

As the filings continue to pile up, so does the variety of crypto assets being targeted by ETP issuers. While the number of crypto ETFs like Litecoin, Hedera, Solana and XRP ETF products has grown, asset managers are also intensifying how these offerings target traditional finance products more closely.

This integration of Bitcoin into mainstream finance and markets is precisely what several crypto enthusiasts and proponents have been anticipating for years.

As Geraci aptly observed, "Bitcoin is starting to eat tradfi."

Year of crypto Wall Street takeover

As the apex crypto continues to rally in the markets, several asset managers on Wall Street are making Bitcoin a priority in their portfolios.

According to a recent report by Bloomberg, at least one big asset manager will allocate 2% of its Assets Under Management (AuM) to Bitcoin, underscoring the potential for the asset to go mainstream on Wall Street.

Already, many traditional firms are buying Bitcoin through ETFs, complementing the unrelenting acquisitions from spot buyers like MicroStrategy.

This article was originally published on U.Today