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ProShares Launches Six Ether Futures ETFs, Expanding Crypto ETF Market
The newly launched ETFs, released on Monday, offer investors exposure to Ether through futures contracts rather than direct investment in the cryptocurrency.
Among the new ETFs, ProShares Advisors is behind three: Ether Strategy ETF (EETH), Bitcoin & Ether Equal Weight Strategy ETF (BETE), and Bitcoin & Ether Market Cap Weight Strategy ETF (BETH)
By tracking the performance of Ether futures contracts, these ETFs bring regulated exposure to the cryptocurrency market.
“What we know is the futures ETFs are here today and what’s important about that is that the regulated futures market resolves a lot of the challenges as the spot market is maturing,” Simeon Hyman, ProShares’ global investment strategist, told CNBC’s “ETF Edge” on Monday.
The U.S. Securities and Exchange Commission (SEC) is currently reviewing the potential approval of a spot bitcoin ETF
This comes after a judge ruled against the SEC’s argument to prevent the conversion of a Grayscale Bitcoin Trust (GBTC) into an ETF.
Previously, the SEC had consistently rejected similar products in recent years
In contrast, ProShares manages the Bitcoin Strategy ETF (BITO), the largest bitcoin futures ETF available, which has shown impressive growth of over 37% year to date.
“We have a full suite of crypto solutions,” said Hyman. “We’re the largest crypto ETF provider.”
The BETE and BETH ETFs offer exposure to two of the most prominent cryptocurrencies, making them logical additions to ProShares’ product lineup.
EU’s First Spot Bitcoin ETF Goes Live
Last month, London-based Jacobi Asset Management announced the release of Europe’s first spot Bitcoin ETF, which will be listed on the EuroNext Amsterdam Exchange.
The ETF went live after a one-year delay due to unfriendly market conditions after it received approval from the Guernsey Financial Services Commission (GFSC) in October 2021
The fund charges its clients a 1.5% annual management fee with authorized participants including Jane Street and DRW
The launch of the EU’s first spot Bitcoin ETF comes amid a surge in applications for such products in the US
In June, asset management firm Blackrock filed paperwork for a spot Bitcoin ETF, ing other players like Invesco and Wisdom Tree to follow suit or reapply for their own Bitcoin ETF products.
The Chicago Board Options Exchange (CBOE) also filed a bid with the SEC on behalf of Fidelity for a spot Bitcoin ETF