Proshares plans to launch a 2x leveraged long and short Ethereum futures ETF, betting on futures when spot trading isn't working.
Since the SEC approved a Bitcoin spot ETF in January, the crypto community has been eagerly anticipating an Ethereum spot ETF. However, with the recent continuous delays by the SEC, the probability of approval in May is no longer optimistic. At the same time, ProShares, an ETF issuer specializing in futures and leverage operations, has submitted a 2x long and short Ethereum futures ETF in an attempt to attract investors' attention.
The approval of an Ethereum ETF is in doubt, with issuers VanEck and CoinShares also lacking confidence.
This is kinda interesting, ProShares has filed for 2x and -2x Spot Ether ETFs.. and it's filed as 40 Act bc they don't actually hold either but rather use swap contracts for the exposure. This is exact filing as $SBIT and that was allowed to launch 75 days on schedule. pic.twitter.com/xPFZfmaODc
— Eric Balchunas (@EricBalchunas) April 9, 2024
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Ethereum Futures ETF Listing Status
The U.S. Securities and Exchange Commission (SEC) approved 9 Ethereum-related futures ETFs in October 2023, including Proshares' Ethereum Strategy ETF EETH. EETH invests in CME ETHER FUTURE futures to gain exposure to Ethereum, but the market response after its listing seems tepid, with current assets totaling only $72.53 million.
Pretty meh volume for the Ether Futures ETFs as a group, a little under $2m, about normal for a new ETF but vs $BITO (which did $200m in first 15min) it is low. Tight race bt VanEck and ProShares in the single eth lane. pic.twitter.com/F9AHtrVcVf
— Eric Balchunas (@EricBalchunas) October 2, 2023
Proshares Applies for Two New Leveraged Ethereum ETFs
According to SEC filings, Proshares submitted prospectuses for two new ETFs on 4/8:
- Ultra Ether ETF 2x leverage
- UltraShort Ether ETF 2x inverse leverage
These ETFs also use Ethereum futures contracts and swap contracts to double the exposure to Ethereum, without directly investing in Ethereum spot.
In addition, Defiance recently submitted a 2x leveraged Ethereum futures ETF.