Coinspeaker
ProShares Pitches Leveraged, Short ETFs to Curb Bitcoin Price Volatility

Earlier this week on Tuesday, April 2, ProShares launched its Ultra Bitcoin ETF (ticker BITU) that will track 2x the daily performance of Bitcoin through the Bloomberg Bitcoin Index. The other product it launched is the ProShares UltraShort Bitcoin ETF (SBIT), which tracks exactly the inverse of this. As per ProShares, each of these products – BITU and SBIT – will have an expense ratio of 95 basis points.

The successful introduction of twelve Bitcoin ETFs directly investing in Bitcoin has attracted net inflows of $12 billion and amassed nearly $60 billion in assets. What sets these ProShares ETFs apart is their focus on providing amplified returns on spot Bitcoin, rather than the futures market. Speaking on the development, Michael O’Riordan, founding partner of Blackwater, an ETF consulting firm said:

“It demonstrates how ETF managers can be an opportunistic bunch by trying to leverage off the positive sentiment as much as possible”.

According to Michael Sapir, the CEO of ProShares, the leveraged BITU fund provides investors with the chance to pursue “amplified B...