The firm’s innovative ETFs aim to offer investors alternative ways to hedge fiat with Bitcoin futures.
Photo: Rafael Henrique/Reuters
Key Takeaways
- ProShares has filed for ETFs that track the S&P 500, Nasdaq-100, and gold priced in Bitcoin.
- These ETFs will use Bitcoin futures to achieve Bitcoin-denominated returns rather than directly investing in Bitcoin.
ProShares, a prominent asset manager overseeing more than $75 billion in assets, is seeking SEC approval to offer three new ETFs that would track the performance of the S&P 500, the Nasdaq-100, and gold relative to Bitcoin.
The proposed funds — ProShares S&P 500 Bitcoin ETF, ProShares Nasdaq-100 Bitcoin ETF, and ProShares Gold Bitcoin ETF — will measure returns in Bitcoin terms rather than US dollars, according to prospectus materials shared by Nate Geraci, president of The ETF Store. Management fees and ticker symbols have not been disclosed.
While the funds won’t directly invest in Bitcoin, they will utilize Bitcoin futures contracts to achieve Bitcoin-denominated returns. Each ETF will maintain a long position in its respective underlying asset alongside a short US dollar/long Bitcoin position through futures contracts.
“Reset monthly, the currency hedge is intended to mitigate the impact of changes in the value of the US dollar relative to Bitcoin,” according to the materials.
“Basically a long position in underlying stocks or gold & then a short USD/long BTC position using BTC futures,” Geraci explained. “I’m calling these BTC hedged ETFs.”
Each fund plans to invest up to 25% of their total assets in wholly-owned Cayman Islands subsid