ProShares Ultra Bitcoin ETF Was Launched To Target 2x Daily Bitcoin Returns

Key Points:

• ProShares launches ProShares Ultra Bitcoin ETF and ProShares UltraShort Bitcoin ETF, offering leveraged and short exposure to Bitcoin via ETFs.
• These ETFs allow investors to capitalize on Bitcoin’s volatility without direct crypto investment.
• The launch responds to market dynamics, as Bitcoin sees a price correction and investors seek diversified crypto options amidst economic uncertainty.

ProShares, a leading ETF provider, has unveiled the ProShares Ultra Bitcoin ETF (BITU), marking a milestone as the first ETF engineered to track Bitcoin’s intraday 2x return target. Alongside BITU, ProShares has also introduced the ProShares UltraShort Bitcoin ETF (SBIT), aiming to capture -2x daily Bitcoin returns.

ProShares Introduces Innovative ProShares Ultra Bitcoin ETF

Michael L. Sapir, CEO of ProShares, highlighted the significance of these offerings, stating:

“BITU and SBIT are tailored to tackle the complexities of obtaining leveraged or short exposure to Bitcoin, which historically has been cumbersome and costly.”

ProShares Ultra Bitcoin ETF enables investors to pursue amplified Bitcoin returns or manage exposure with reduced capital risk, while ProShares UltraShort Bitcoin ETF allows for profit-seeking in declining Bitcoin markets or hedging against Bitcoin exposure.

Listed on the New York Stock Exchange, BITU and SBIT cater to investors seeking leveraged or short Bitcoin exposure through the accessibility and efficiency of an ETF.

ProShares’ Launch Addresses Investor Demand Amid Bitcoin Correction

ProShares, renowned for its geared ETFs, has been at the forefront of crypto-linked ETF innovation. Since debuting the first U.S. Bitcoin-linked ETF (BITO) in October 2021, ProShares has introduced a suite of ETFs covering various crypto strategies, including short Bitcoin-linked ETFs (BITI), Ether-linked ETFs (EETH), and ETFs combining Bitcoin and Ether performance (BETE, BETH).

However, these ETFs, including BITU and SBIT, do not directly invest in cryptocurrencies. Meanwhile, amid Bitcoin’s decline below $66,000, spot Bitcoin ETFs witnessed outflows, correlating with the cryptocurrency’s 5% dip.

The broader retreat in the crypto market as April unfolds reflects a cautious sentiment driven by lingering inflationary pressures in the U.S. This shift in market sentiment indicates a scaling back of expectations for looser monetary policies and interest rate cuts by the Federal Reserve.