#BitcoinOurWorld #ProShares #ETFsApproval ProShares Introduces Enhanced Bitcoin ETFs
The issuer of leveraged funds, ProShares, has launched two increased bitcoin products in response to investors' increasing need for investment vehicles that center around the largest cryptocurrency in the world by market value.
The ProShares UltraShort Bitcoin ETF (SBIT), which has a -2x exposure, will take the opposite course from the ProShares Ultra Bitcoin ETF (BITU), which aims to double daily spot bitcoin gains. Two ETFs have a cost ratio of 0.95%, the company announced on Tuesday.
According to etf.com analyst Sumit Roy, "many investors in bitcoin are traders looking to make a quick buck by buying and selling bitcoin over short time periods." "Those short-term traders can use leveraged bitcoin ETFs to get more bang for their buck when bitcoin rises."
The enhanced funds are making their debut over three months after the Securities and Exchange Commission approved the 10 spot bitcoin ETFs to start trading. With more than $60 billion in assets under management, the ETFsâwhich include the Fidelity Wise Origin Bitcoin Fund (FBTC) and the iShares Bitcoin Trust (IBIT) by BlackRock Inc.âhave been the most successful ETF launches ever. Since early January, the largest, IBIT, has created an astounding $18 billion under management.
The ETF launches have contributed significantly to the staggering 57% increase in the price of bitcoin this year. However, over the last seven days, the price of bitcoin has dropped 4%, hovering at $66,000, or roughly where it was ten days ago, according to CoinMarketCap.
Visit Bitcoin Mania
Spot with leverage One option for investors to wager against or invest in cryptocurrencies is through bitcoin funds. They can increase the volatility of the asset even though they can assist some investors in hedging their exposure to bitcoin.
According to ProShares CEO Michael L. Sapir, investors can "target a level of exposure with less money at risk" with BITU and SBIT, but leveraged and short exposure can typically be "onerous and expensive."