ProShares aims to launch Bitcoin-hedged funds
The company filed an SEC filing
Popular ETF issuer ProShares has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a series of innovative exchange-traded funds (ETFs) that combine traditional financial assets with Bitcoin hedging. These unique ETFs are designed to track the performance of the S&P 500, Nasdaq-100, and gold while incorporating Bitcoin futures into their strategy.
According to the filing, the funds will integrate long positions in equities or gold with short positions in the U.S. dollar and long positions in Bitcoin through futures contracts. This structure allows ProShares to leverage Bitcoin’s potential as an alternative asset while maintaining exposure to traditional financial markets. Notably, the funds will not directly invest in Bitcoin.
The SEC filing specifies that the Bitcoin hedge is achieved via futures contracts and is designed to offset U.S. dollar exposure tied to the S&P 500 holdings. This strategy, rebalanced monthly, aims to mitigate the impact of fluctuations in the dollar's value relative to Bitcoin.
Bitcoin’s expanding role in the global financial system
This proposal highlights Bitcoin’s growing significance in traditional finance (TradFi). Over time, financial institutions have increasingly integrated Bitcoin and digital assets into conventional investment strategies. Advocates like Robert Kiyosaki have projected Bitcoin’s price to reach $350,000 by the end of 2025, reflecting increasing optimism in the asset's potential.
In addition to ProShares' filing, REX recently introduced a new ETF concept named the “Bitcoin Corporate Treasury Convertible Bond ETF.” This fund is designed to invest in convertible bonds issued by companies such as MicroStrategy and Marathon Digital, which incorporate Bitcoin into their corporate strategies. The ETF plans to allocate at least 80% of its net assets, including borrowings, to these specialized bonds, offering a unique way to invest in Bitcoin-related companies.
The rising interest in Bitcoin ETFs is further evidenced by significant inflows into spot Bitcoin ETFs following Donald Trump’s recent election victory. Total investments now exceed $35.6 billion, with BlackRock’s IBIT ETF alone attracting over $37 billion, showcasing strong market confidence in Bitcoin adoption.
Last year, ProShares' Bitcoin Futures ETF, trading under the ticker "BITO," achieved record-breaking returns.
