Just In: Bitcoin ETF Market to Expand with ProShares’ New Leveraged, Inverse Offerings

The Bitcoin ETF market is about to get more diverse as ProShares has made a series of new filings. Bloomberg’s ETF analyst Henry Jim shares that five new Bitcoin ETFs are in the pipeline, offering 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 and allow investors to either bet on or against Bitcoin’s price movements.

More ETPs on the way

The lineup includes the ProShares UltraShort Bitcoin ETF for those expecting Bitcoin’s value to drop sharply, offering double the inverse exposure (-2x), and the ProShares Ultra Bitcoin ETF for those anticipating a significant price increase, providing double the exposure (+2x).

They also offer moderate inverse exposure options through the ProShares ShortPlus Bitcoin ETF (-1.5x) and the ProShares Short Bitcoin ETF (-1x), as well as the ProShares Plus Bitcoin ETF (+1.5x) for moderate positive exposure. The details on tickers and fees are pending, with the launch of these ETFs set for April 1.

Jim confirmed that it is not an April Fool’s prank and is an actual launch date.

Diverse Bitcoin ETF market

Bloomberg’s Eric Balchunas notes that ProShares isn’t alone in this venture. RexShares has also submitted filings, hinting that the market may soon see a surge in such offerings.

ProShares just filed for a bunch of leveraged spot bitcoin ETFs. RexShares also filed for a bunch a few weeks ago too. There could have up to a dozen of these on the market in a few months. https://t.co/VDDbBCc9dn

— Eric Balchunas (@EricBalchunas) January 16, 2024

This news comes against the backdrop of anticipated outflows from Grayscale Bitcoin Trust (GBTC). Analyst James Seyffart suggested a net outflow of around $594 million from GBTC, hinting at strategic reallocation. He also notes that this might be a delayed reaction due to the T+1 settlement process.

Seyffart further points out that the total trading volume for BTC ETPs has approached a staggering $10 billion over three days, an indicator of high investor activity. Growing institutional interest in cryptocurrencies and the market’s desire for more regulated investment tools have put Bitcoin ETFs at the forefront. And the potential new launches are expected to make the market more diverse.