In a Flood of Submissions, ProShares and Bitwise Propose Additional Bitcoin and Ether ETFs

Updated: 31 May 2024

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In the recent wave of applications for Ethereum futures exchange-traded funds(ETFs), Bitwise and Proshares have made additional applications for ETFs that offer exposure to both Ethereum and Bitcoin.

Bitcoin and Ether Futures ETFs

While most of the latest ETF applications have been solely for funds backed by Ethereum futures contracts, some asset managers have also made applications for funds backed by Bitcoin and Ethereum.

ProShares filed for an ETF backed by an equal weight of Ethereum and Bitcoin. In the filing, the company stated that it “seeks investment results, before fees and expenses, that track the performance of the Bitcoin and Ether Equal Weight Index.”

ProShares further clarified that the fund would track “the performance of holding long positions in the nearest maturing monthly bitcoin and ether futures contracts.” The Index is made up of futures contracts, and as the contracts get closer to maturity, The firm added a clause that allows for the ‘rolling’ of the Index futures contracts.

Presently, ProShares offers a number of cryptocurrency-related funds, including a Bitcoin futures ETF. Additionally, late last year, the firm submitted an SEC application for an ETF with an emphasis on the metaverse.

In the ongoing flood of submissions, ProShares has made 4 applications for different ETFs. In addition to the Bitcoin and Ether Equal Weight Index, the firm has also applied for a dual Bitcoin and Ether futures strategy ETF. The latter will monitor the performance of both Bitcoin and Ether futures contracts.

The firm has also applied for a short Ether strategy ETF and an Ether strategy ETF, for which the Securities and Exchanges Commission (SEC) has received 12 applications so far.

UPDATE: We’re at 12. it’s late but I missed one today. @Bitwise actually filed for two ETFs. Equal weight and market weight versions of their dual #Bitcoin and #Ethereum futures ETFs. We’re up to a full dozen Ether futures ETF filings now. Feel like we will get another tomorrow. https://t.co/DWYvEfEKNc pic.twitter.com/q1R1GCkvz5

— James Seyffart (@JSeyff) August 4, 2023

On the other hand, Bitwise has applied for a Bitcoin and Ether Market Weight ETF which based on the filing, “Seeks to achieve its investment objective through market capitalization-weighted exposure to bitcoin futures contracts and ether futures contracts.”

Like ProShares, the asset manager has also filed for an equal-weight index version of the Bitcoin and Ether ETF and an Ether Futures ETF.

As the demand for cryptocurrency ETFs soar, crypto companies are trying to differentiate their products for investors and offer a variety. By tracking the two cryptocurrencies, albeit indirectly, Bitcoin and Ether futures ETFs offer increased exposure to the crypto sector, considering they are linked to the two largest cryptocurrencies.

SEC Under Pressure as Cryptocurrency ETF Applications Multiply

The new wave of applications is fueled by Volatility Shares’ success in an earlier application that led it to launch a 2x Bitcoin Futures ETF in June. By approving the application SEC sparked hope that an Ethereum futures ETF had a better chance of approval.

Following the success, Volatility Shares made the first ether futures ETF application on July 28, setting off a flurry of ether filings from firms such as Grayscale Inc. and Bitwise Asset Management.

Former applications for Ether Futures ETFs made in May had to be withdrawn. However, this time, the SEC is reportedly considering approving the applications, resulting in several launches in October.

https://twitter.com/Malon_MarieFx/status/1687428917626368001

Strategas Securities ETF analyst Todd Sohn said, “The pressure is on the SEC here.” The dual ether and bitcoin futures ETF “would be at least a step forward from moving on from ‘vanilla’ crypto futures to combining different sorts of instruments within the crypto space.”

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