Markets News Report
April 02, 2024

ProShares Launches BITU And SBIT ETFs To Provide 2x Leveraged Exposure To Bitcoin

In Brief

ProShares launched two new products–ProShares Ultra Bitcoin ETF and ProShares UltraShort Bitcoin ETF for tracking Bitcoin’s intraday returns.

ProShares Launches BITU And SBIT ETFs To Provide 2x Leveraged Exposure To Bitcoin

Issuer of exchange-traded funds (ETFs), ProShares launched two new ETF products–ProShares Ultra Bitcoin ETF (BITU), designed to track the asset’s intraday 2x returns, and ProShares UltraShort Bitcoin ETF (SBIT), which tracks the cryptocurrency’s intraday -2x returns, making it the first ETF of its kind in the market.

The ETFs utilize derivatives such as swap agreements, futures contracts, and similar instruments to attain indirect exposure to BTC and ETH.

Both Listed on the New York Stock Exchange, the new ETFs serve investors interested in leveraged or short Bitcoin exposure through the accessibility, convenience, and efficiency offered by an ETF.

Michael Sapir, CEO of ProShares, explained the rationale behind BITU and SBIT, highlighting their purpose in tackling the complexities associated with gaining leveraged or short exposure to Bitcoin. He emphasized that BITU allows investors to pursue amplified Bitcoin returns or manage exposure with reduced financial risk. Meanwhile, SBIT enables investors to capitalize on downward movements in Bitcoin’s price or protect against losses from Bitcoin exposure fluctuations.

ProShares Files Prospectus for Five Leveraged and Inverse Bitcoin ETFs

ProShares is recognized for issuing leveraged and inverse ETFs alongside its offerings of cryptocurrency-related ETFs, highlighted by the launch of the first United States Bitcoin-linked ETF (BITO) in 2021. Currently, the company offers an extensive array of ETFs, managing assets exceeding $70 billion.

ProShares submitted prospectus materials to the Securities and Exchange Commission (SEC) for five leveraged and inverse Bitcoin ETFs, comprisng ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, Proshares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF in January.  This filing closely followed the company’s approval of the spot Bitcoin ETF launch by the SEC and ten other issuers authorized to conduct trading on the exchanges in the United States.

Meanwhile, as of the time of writing, Bitcoin is trading at $66,113.02, showing a decline of over 4% during the preceding 24-hour period, according to CoinMarketCap data. Conversely, its trading volume surged by 79% to $49 billion within the same timeframe. The cryptocurrency currently holds a market capitalization of $1.30 trillion.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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