Leading asset manager ProShares is seeking to establish a new crypto ETF tracking the CoinDesk 20 Index. Hence, it has registered with the Securities and Exchange Commission (SEC) in the United States to seek approval. It evaluates the performance of the 20 best-performing cryptocurrencies in terms of market capitalization. ProShares ETF to Track CoinDesk 20
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Popular ETF issuer ProShares filed for a series of innovative exchange-traded funds that will offer exposure to traditional financial assets while incorporating a Bitcoin hedge. With an additional layer of Bitcoin futures integration, the proposed ETFs would track the performance of the S&P 500, Nasdaq-100, and gold.
How Will the ProShares Bitcoin-Hedged ETFs Function?
As per the SEC filing, these Bitcoin-hedged ETFs will combine long positions in underlying stocks or gold with a short position on the U.S. dollar and a long position in Bitcoin via futures contracts. With this strategy, ProShares seeks to leverage Bitcoin’s potential as an alternative asset while offering exposure to traditional financial markets. Note that the fund doesn’t make any direct investment into Bitcoin.
The SEC filing notes that the short U.S. dollar/long Bitcoin strategy is executed by investing in future contracts for Bitcoin. Thus, it provides a currency hedge for the U.S. dollar exposure tied to the S&P 500 stock position. Reset on a monthly basis, this hedge aims to reduce the effects of fluctuations in the U.S. dollar’s value relative to Bitcoin.
This move marks another step in Bitcoin’s growing influence over traditional finance (TradFi). Over the years, institutions have been exploring innovative ways to integrate Bitcoin and digital assets into conventional investment methods. Furthermore, industry leaders like Robert Kiyosaki are turning bullish expecting it to hit $350K by the end of 2025.
Demand for BTC Bond ETF on the Rise
The latest filing from ProShares reflects the growing market confidence towards the flagship crypto. Notably, following the filing of Bitwise Bitcoin Standard Company ETF, REX has proposed a new exchange-traded fund (ETF) aimed at investing in convertible bonds issued by companies that hold Bitcoin in their corporate treasuries. Dubbed the “Bitcoin Corporate Treasury Convertible Bond ETF,” it seeks to provide investors with exposure to firms like MicroStrategy, Marathon Digital, Metaplanet, and others that leverage Bitcoin as a strategic asset.
The fund commits to investing at least 80% of its net assets, including any borrowings, in these specialized convertible bonds, noted the filing. The structure offers investors a unique way to gain exposure to companies involved in the bitcoin space while focusing on their convertible bond offerings rather than direct equity or cryptocurrency investments.
Inflows into spot BTC ETFs have skyrocketed after Donald Trump’s election victory last month with hopes of rising Bitcoin adoption in the market. The total inflows since inception have skyrocketed to more than $35.6 billion with BlackRock’s IBIT alone seeing over $37 billion in inflows.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Burkett Financial Services, an investment firm, has strategically revised its crypto investments. The firm opted to abandon the ProShares Bitcoin Strategy ETF (BITO) to go all in on BlackRock’s iShares Bitcoin Trust (IBIT). According to the latest SEC filings, Burkett Financial Services reported a significant increase in its holdings of IBIT.
Increased Instituonal Confidence In BlackRock Bitcoin ETF
The latest move reflects a growing confidence in the BlackRock Bitcoin ETF. In the 13F filing dated July 10, Burkett Financial Services reported holding 1,168 units of IBIT, valued at $39,876. It marks a significant rise from its first-quarter position, where it owned 602 units worth $24,363. This doubling of their IBIT investment indicates a solid endorsement of BlackRock’s approach to BTC ETFs.
In contrast, Burkett Financial Services completely liquidated its position in ProShares’ BITO ETF during the second quarter. The firm had previously reported holding 630 units of BITO, valued at $20,344, in the first quarter. The decision to divest from BITO and reinvest in IBIT underscores a strategic shift in Burkett Financial Services’ investment philosophy regarding crypto assets.
Moreover, the update comes amid a broader trend of institutional investors entering the Spot Bitcoin ETF market. The initiation of Round 2 of 13F filings reveals a significant shift, with more institutional players seeking exposure to Bitcoin through established and reputed funds like BlackRock’s IBIT and Grayscale’s GBTC.
In addition, in the second quarter of 2024, Fiduciary Alliance LLC made significant investment. They emerged as one of the top purchasers of BlackRock’s Bitcoin ETF. According to a 13-F filing with the U.S. SEC on July 10, the firm acquired 188,668 units of IBIT, which amounted to $6.64 million.
Furthermore, Fiduciary Alliance expanded its portfolio by investing $3.48 million in Grayscale Bitcoin Trust (GBTC). Moreover, the Grayscale trust recently experienced a robust inflow of $25 million on Monday, spurred by multiple institutional investors filing 13-F forms. Earlier, CoinGape reported that City State Bank, Bank of New Hampshire, and Northwest Capital Management disclosed their holdings in BlackRock’s IBIT.
Also Read: Institutional FOMO On Spot Bitcoin ETF As German Govt Continues BTC Sell-off
ETF Inflow Streak Continues
Spot Bitcoin ETFs registered an impressive net inflow of $147 million on Wednesday, July 10, 2024. This marks the fourth consecutive trading day with net inflows exceeding $100 million. Moreover, this trend underscores the growing investor confidence and interest in Bitcoin despite recent market fluctuations.
Fidelity’s Bitcoin ETF (FBTC) led the pack with an impressive inflow of $57.8 million on the same day. This substantial inflow highlights Fidelity’s strong market position and the trust investors place in their Bitcoin product. In contrast, BlackRock’s IBIT experienced a significant drop in inflows, plummeting from $121 million to $22.2 million.
Meanwhile, Grayscale Bitcoin Trust continued to experience outflows, but at a relatively modest rate of $8.2 million. Earlier, on Tuesday, Grayscale’s GBTC witnessed a staggering $37.5 million outflows. Hence, the slowed outflows hint at a significant recovery.
Also Read: Fiduciary Alliance Grabs Major Holdings In BlackRock Bitcoin ETF, GBTC, Crypto Shares
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Rex Shares has captured investor attention with its latest addition to the T-REX ETF suite. Notably, the launch of the T-REX 2X Long Bitcoin Daily Target ETF (BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ) marks a significant move in the crypto investment landscape. These new products promise to offer investors amplified exposure to Bitcoin’s daily performance.
Meanwhile, Bloomberg analyst Eric Balchunas has lauded the event and anticipates the newly launched ETFs to challenge Proshares’ dominance in the space.
T-Rex Launches New 2X Leveraged Bitcoin ETF
Eric Balchunas, a senior Bloomberg ETF analyst, praised the launch, predicting that these new ETFs will challenge the dominance of ProShares and VolShares. Balchunas highlighted the growing interest in leveraged Bitcoin ETFs, noting that existing products from ProShares and VolShares already have around $2 billion in combined assets.
Meanwhile, the press release from Rex Shares emphasized the potential of the new ETFs to help investors capitalize on Bitcoin’s volatility. Scott Acheychek, COO of REX Financial, the parent company of Rex Shares, remarked on Bitcoin’s impressive performance this year.
“By launching 2X leveraged and inverse Spot Bitcoin ETFs, we’re arming traders with powerful tools to capitalize on Bitcoin’s price swings like never before,” Acheychek said.
In addition, this launch is timely, coinciding with a dynamic period in the cryptocurrency market. The debut of Spot Bitcoin ETFs in January has spurred trading volumes and optimism for digital assets.
In the past six months, Spot Bitcoin ETFs have accumulated nearly $50 billion in assets. This massive influx into the U.S. Spot Bitcoin ETF has also pushed BTC to a record high in March, breaking the $70,000 mark.
Meanwhile, Matt Tuttle, CEO of Tuttle Capital Management, expressed excitement about expanding into digital assets. He lauded this development as a major milestone for the firm, as it aims to offer “cutting-edge ETFs” for specific investors’ requirements. Besides, he emphasized the innovative nature of these funds, designed to provide investors with both amplified upside and downside exposure.
Also Read: Bitcoin And XRP In Focus Ahead Of Big US Crypto-Political Events, Here’s Why
A Closer Look Into The Report
The introduction of the T-REX 2X Long and Inverse Bitcoin ETFs adds to Rex Shares’ growing portfolio, which now includes nine innovative products since its launch in October 2023. These new ETFs reflect a broader trend of increased interest in leveraged and inverse crypto products.
Notably, they offer sophisticated investors new ways to engage with the market, potentially increasing trading activity and liquidity. However, investors will be closely monitoring the performance of these new ETFs.
Meanwhile, the ability to gain double exposure to Bitcoin’s price movements, whether bullish or bearish, provides an attractive proposition for those looking to maximize their returns or hedge their positions. This move by Rex Shares underscores the ongoing evolution and maturation of the crypto investment space, where new products and strategies continue to emerge.
Besides, the news also comes amid a robust inflow into Bitcoin ETFs recently, after a gloomy week over the past few days. This news, along with the significant inflow into the investment instrument has further caught the eyes of the investors.
Also Read: Judge Issues Key Orders In Binance Vs SEC For Motions To Amend Ruling
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Ark Invest, an investment firm led by Cathie Wood, offloaded a significant share in the ProShares Bitcoin Strategy ETF (BITO). On Thursday, April 25, Ark Invest sold over $6.7 million worth of BITO. In addition, the firm divested a sizable stake in Block Inc. (SQ). On the contrary, it added shares of Meta Platforms Inc. (META).
Ark Invest Divests Stake In ProShares Bitcoin ETF
According to data from Ark Invest Daily on X, the Cathie Wood-led organization dumped 237,983 shares in BITO from ARK Next Generation Internet ETF (ARKW. The sell transaction was worth $6.71 million, considering the latest closing price of the Pro Shares Bitcoin ETF.
On Thursday, the BITO fund closed at $28.22, gaining 1.33% in value. However, after the latest offloading, the ETF witnessed a slight slump in the pre-market session today. At press time, the ProShares Bitcoin Strategy ETF was valued at $28.08, dropping 0.50% from recent close.
Earlier, on April 19, ARKW sold 28,936 shares of BITO while simultaneously increasing its holdings with the acquisition of 139,152 shares of ARKB, ARK’s bitcoin ETF. Moreover, ARK expanded into Ethereum investments, buying 41,068 shares of ProShares Ether ETF.
Also Read: Multiple Bitcoin ETFs Report Net Outflows, GBTC OutFlows Cross $17 Billion
Meta Platforms & Block Portfolio Rebalancing
Apart from divesting ProShares Bitcoin ETF stake, Ark Invest added META shares to ARKW and ARK Innovation ETF (ARKK). The two buy transactions involved 25,355 shares of Meta Platforms. Considering the latest close, the purchase was worth nearly $11.20 million.
Ark Invest seems to be capitalizing on the “buy the dip” strategy as the META stock plunged over 10% on Thursday, closing at $441.38. However, the stock registered a rebound in the pre-market session today as it traded at $446.23, gaining 1.10%.
Whilst, Ark Invest expedited the divestment of the SQ stock. The Cathie Wood-led firm dumped 212,715 shares of the Block Inc. from ARKK and Ark Fintech Innovation ETF (ARKF). The offloading was worth a whopping $15.48 million at the closing price of $72.79, dropping 1.67%. In the pre-market session, the SQ stock was up 0.77% to $73.35 on Friday.
Also Read: Grayscale Bitcoin Trust (GBTC) Sets Unprecedented Outflow Record: What’s Next?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
ProShares, a leading ETF provider, has unveiled two major offerings in the crypto ETF arena. It launched the ProShares Ultra Bitcoin ETF (BITU) and the ProShares UltraShort Bitcoin ETF (SBIT). These funds mark a significant milestone in the world of crypto investment and will provide investors with unprecedented access to leveraged and exposure to Bitcoin.
About ProShares New Bitcoin ETF Offerings
Listed on the New York Stock Exchange, BITU and SBIT are tailored for investors seeking leveraged or short BTC exposure, offering the accessibility, convenience, and efficiency of traditional ETFs. ProShares, renowned for its expertise in geared ETFs, further solidifies its position as a leader in the crypto ETF space with these new offerings.
“BITU and SBIT are designed to address the challenge of acquiring leveraged or short exposure to Bitcoin, which can be onerous and expensive,” stated ProShares CEO Michael L. Sapir in the latest press release.
In addition, he noted, “BITU offers investors the opportunity to pursue magnified Bitcoin returns or target a level of exposure with less money at risk. SBIT allows investors to seek to profit when the price of Bitcoin drops or hedge their Bitcoin exposure.”
This launch follows ProShares’ previous successes in the crypto-linked ETF arena. It includes the groundbreaking launch of the first U.S. BTC-linked ETF (BITO) in October 2021. Moreover, ProShares has expanded its offerings since then.
They now include the first U.S. short Bitcoin-linked ETF (BITI). They also offer ETFs tracking the performance of ether (EETH) and short Ethereum (SETH). Additionally, ProShares has ETFs targeting the combined performance of Bitcoin and Ethereum (BETE, BETH).
Also Read: Bitcoin ETFs Dominate US Market in Q1 2024
Spot BTC ETF Experiences Outflows
Amid the launch of new ProShares offerings, a significant shift occurred in the flows within the 11 Spot Bitcoin ETFs, as they collectively turned negative once again. This reversal was primarily driven by substantial outflows from the Grayscale Bitcoin ETF (GBTC). The GBTC outflows surged past the $300 million mark on that day alone.
Specifically, Monday saw Bitcoin Spot ETFs experience a net outflow of $85.84 million. Notably, GBTC recorded a notable single-day net outflow of $302 million, indicating a considerable movement of funds away from this particular ETF.
In contrast to GBTC’s outflows, the BlackRock ETF (IBIT) witnessed a net inflow of $165 million on the same day, while Fidelity ETF (FBTC) saw a net inflow of $43.99 million. These inflows into alternative Bitcoin ETFs demonstrate a diverse investor interest in the crypto market. Despite the fluctuations within individual ETFs, the cumulative net inflow for Spot BTC ETFs has reached an impressive $12.04 billion.
Also Read: Bitcoin ETF Flows Turn Negative As Q2 Begins, Halving Excitement Ends?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Cathie Wood’s asset management firm Ark Invest continues to offload parked holdings in ProShares Bitcoin Strategy ETF (BITO) to invest in its newly launched Ark 21Shares spot Bitcoin ETF (ARKB). ETF experts believe it could be a matter of time before Ark Invest brings its active fund management strategy to entire crypto exchange-traded funds (ETFs).
Cathie Wood’s Ark Invest Buys ARKB Spot Bitcoin ETF Units
On January 19, Cathie Wood’s Ark Invest sold 510,337 shares of ProShares Bitcoin Strategy ETF (BITO) valued at approximately $10 million and 45,052 AMD shares worth 7.8 million to purchase 316,526 Ark 21Shares Bitcoin ETF (ARKB) units worth more than $13 million.
Cathie Wood reduced units of ProShares Bitcoin Strategy ETF again from ARK Next Generation Internet ETF (ARKW) as part of the strategy to increase holdings in Ark 21Shares spot Bitcoin ETF.
On January 18, ARK Next Generation Internet ETF (ARKW) sold 758,915 BITO units worth $15 million to buy 365,695 units of Ark 21Shares spot Bitcoin ETF (ARKB) worth $15 million. Also, on Jan 16, ARKW sold 757,664 BITO units worth $15.8 million to buy 365,427 Ark 21Shares Bitcoin ETF (ARKB) shares worth $15.8 million.
Thus, ARKW has purchased 1.04 billion ARKB units worth $43 million in a week.
ProShares Bitcoin Strategy ETF (BITO) price closed 1.88% higher at $20.09 on Friday. BITO price dropped 9.26% in this week amid spot Bitcoin ETF outflow and selling by ARKW.
Ark 21Shares Bitcoin ETF (ARKB) price closed 1.90% higher at $41.73. It also saw a 3.56% fall this week. As per Ark Invest data until Jan 19, ARKB has Bitcoin worth $309.66 million.
Also Read: Tom Emmer Backs Donald Trump’s Vision On CBDC Threat
Cathie Wood Is Bullish on Bitcoin
Cathie Wood reiterated her bullish case on Bitcoin, claiming that the Bitcoin network is much larger than the combined size of the cloud infrastructure built by Amazon, Google, and Microsoft over the last 15-20 years. Elon Musk reacted to her post saying “Wow.”
BTC price jumped 1% in the past 24 hours, with the price currently trading at $41,659. The 24-hour low and high are $40,297 and $42,134, respectively. Furthermore, the trading volume has decreased by 13% in the last 24 hours, indicating a decline in the interest of traders.
Also Read: XRP Lawsuit — Ripple Fires Back At SEC For Seeking Financial Statements And Discovery
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Away from the ProShares ETF news, the market is adapting to the introduction of spot Bitcoin ETFs.
In a bold move to amplify its Bitcoin offerings ProShares, a leading provider of Exchange-Traded Funds (ETFs), has filed prospectus materials for five leveraged and inverse Bitcoin ETFs.
This move comes just days after the Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, marking a new era in the acceptance and integration of cryptocurrencies into traditional financial markets.
The ProShares ETFs
The five funds introduced by ProShares include ProShares Plus Bitcoin ETF, ProShares Ultra Bitcoin ETF, ProShares UltraShort Bitcoin ETF, ProShares Short Bitcoin ETF, and ProShares ShortPlus Bitcoin ETF. One of these funds aims to deliver daily investment results that correspond to two times (2x) the daily performance of the Bloomberg Galaxy Bitcoin Index.
However, it’s important to note that two of the funds do not directly invest in Bitcoin, and three do not directly short Bitcoin, according to ProShares’ filing. This diversified approach suggests that ProShares aims to cater to various investor preferences and risk appetites within the crypto space.
Nate Geraci, president of investment advisor The ETF Store, commented on the development and speculated that ProShares’ products may not find a place on platforms like Vanguard Group.
ProShares files for leveraged & inverse bitcoin ETFs…
+1.5X, +2X, -1X, -1.5X, and -2X
Quickly getting wild.
Vanguard definitely won’t have these on their platform. pic.twitter.com/8unjgNfSVZ
— Nate Geraci (@NateGeraci) January 16, 2024
It is worth mentioning that Vanguard, the world’s second-largest asset management company with $7.3 trillion in Assets Under Management (AUM), has chosen not to offer spot bitcoin ETFs on its brokerage platform.
Citing concerns over Bitcoin’s high volatility, Vanguard has blocked users from buying the newly approved Bitcoin spot ETFs, including BlackRock Inc’s (NYSE: BLK) iShares Bitcoin Trust and Grayscale Bitcoin Trust. This decision has led to dissatisfaction among users, with some considering a shift to other platforms aligning more closely with their investment philosophy.
While Vanguard takes a cautious stance, other financial giants like Citigroup and Charles Schwab have embraced the trend, with both financial institutions confirming their support for spot Bitcoin ETF trading. This divergence in approaches highlights the ongoing debate within the financial industry regarding the integration of digital assets into traditional investment portfolios.
Similarly, the New York Stock Exchange (NYSE) has filed for the listing and trading of options on Commodity-Based Trust Shares, specifically targeting spot bitcoin ETFs.
Furthermore, Grayscale Investments has filed for a covered call ETF, aiming to generate income from a position in its converted Grayscale Bitcoin Trust (GBTC). This move signifies a continued effort by established investment firms to explore innovative ways to participate in the crypto market.
Anticipation Builds for Bitcoin Halving
Away from the ProShares ETF news, the market is adapting to the introduction of spot Bitcoin ETFs. To complement this, the crypto community is eagerly awaiting the upcoming Bitcoin halving, now just 93 days away. The event marks the fourth Bitcoin halving, a process that periodically reduces block rewards, enhancing Bitcoin’s scarcity and reinforcing its appeal as a store of value.
Anthony Scaramucci, founder of SkyBridge Capital, adds to the excitement by predicting a bullish $170,000 Bitcoin price. This excitement over the halving emphasizes the importance of these supply-driven events in establishing Bitcoin’s long-term value proposition.
Asset management firm Ark Invest founded by Cathie Wood has offloaded holdings in ProShares Bitcoin Strategy ETF (BITO). The move comes as Ark Invest looks to increase its holdings in the Ark 21Shares Spot Bitcoin ETF (ARKB) from funds earlier parked in the ProShares Bitcoin Strategy ETF, strategically readjusting in response to evolving market conditions.
Cathie Wood’s Ark Invest Buys Units in ARKB Spot Bitcoin ETF
On January 16, Cathie Wood’s Ark Invest sold 757,664 shares of ProShares Bitcoin Strategy ETF (BITO) valued at approximately $15.8 million to purchase 365,427 Ark 21Shares Bitcoin ETF (ARKB) worth $15.8 million.
Cathie Wood reduced units of ProShares Bitcoin Strategy ETF through ARK Next Generation Internet ETF as part of the strategy to increase holdings in Ark 21Shares spot Bitcoin ETF. She recently targeted $4 billion in its own Ark21Shares Bitcoin ETF (ARKB).
BITO price closed on Tuesday at $20.91, down 0.71%. Whereas, Ark 21Shares Bitcoin ETF (ARBK) price also closed 0.80% lower at $43.51.
Before the spot Bitcoin approval, ARK Next Generation Internet ETF (ARKW) purchased 20,000 shares of the ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA). ARKW also bought 4.32 million shares of ProShares Bitcoin Strategy ETF (BITO) by completely offloading its holdings in Grayscale Bitcoin Trust (GBTC). Bloomberg Intelligence analyst Eric Balchunas said the move is probably a “temporary parking spot.” Ark Invest and institutions use highly liquidity ETFs for transitions similarly.
Read More: Elon Musk’s X Faces Legal Blow As Court Rejects Appeal To Access Trump’s DMs
Cathie Wood’s Target For Bitcoin
ARKW still has enough shares of ProShares Bitcoin Strategy ETF to meet its target for its spot Bitcoin ETF. The crypto market conditions have worsened after the spot Bitcoin ETFs started to trade on Wall Street on January 11.
Cathie Wood’s Ark Invest funds are also offloading massive holdings in Coinbase (COIN) to buy other shares, including Tesla (TSLA).
Cathie Wood has reiterated her bullish case for BTC price hitting $1.5 million in 2030. Other experts also beleive BTC price surpassing $100K after Bitcoin halving in April.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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