ProShares Advisors, an investment management firm, has recently introduced six new futures products for the cryptocurrency Ether, marking its debut in the ETF market. These newly launched ETFs provide investors with exposure to Ether through futures contracts instead of direct investment in the cryptocurrency itself.
Among the new ETFs, ProShares Advisors is behind three: Ether Strategy ETF (EETH), Bitcoin & Ether Equal Weight Strategy ETF (BETE), and Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). These ETFs track the performance of Ether futures contracts, offering regulated exposure to the cryptocurrency market.
The introduction of Ether futures ETFs is seen as a significant development as the regulated futures market provides a solution to challenges faced by the spot market as it continues to mature. Simeon Hyman, ProShares’ global investment strategist, mentioned the importance of the futures ETFs, stating that they are here today and can address many of the issues in the cryptocurrency market. This is particularly relevant as the U.S. Securities and Exchange Commission (SEC) continues to review the potential approval of a spot bitcoin ETF.
In a notable ruling, a judge rejected the SEC’s argument to prevent the conversion of a Grayscale Bitcoin Trust (GBTC) into an ETF. This decision is a departure from the SEC’s previous stance, where it consistently rejected similar products in recent years.
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ProShares already manages the Bitcoin Strategy ETF (BITO), which is the largest bitcoin futures ETF currently available. BITO has shown impressive growth, with returns of over 37% year to date. Hyman highlighted that ProShares has a full suite of crypto solutions and is the largest crypto ETF provider.
The BETE and BETH ETFs offer exposure to two of the most prominent cryptocurrencies, making them logical additions to ProShares’ product lineup.
In Europe, Jacobi Asset Management released Europe’s first spot Bitcoin ETF, which is listed on the EuroNext Amsterdam Exchange. The ETF went live after a one-year delay due to unfriendly market conditions but received approval from the Guernsey Financial Services Commission (GFSC) in October 2021. The fund charges its clients a 1.5% annual management fee and has authorized participants such as Jane Street and DRW.
The launch of Europe’s first spot Bitcoin ETF comes at a time when there is a surge in applications for similar products in the US. In June, asset management firm Blackrock filed paperwork for a spot Bitcoin ETF, inspiring other players like Invesco and Wisdom Tree to follow suit or reapply for their own Bitcoin ETF products. The Chicago Board Options Exchange (CBOE) also filed a bid with the SEC on behalf of Fidelity for a spot Bitcoin ETF.
These developments in the ETF market indicate a growing interest in cryptocurrencies and a recognition of their potential as investment vehicles. As more and more investment management firms and exchanges enter the space, it is expected that the cryptocurrency market will continue to mature and attract a broader range of investors.
Overall, the introduction of Ether futures ETFs by ProShares Advisors and the launch of Europe’s first spot Bitcoin ETF signify important steps towards the mainstream adoption and acceptance of cryptocurrencies as investment assets. These developments offer regulated exposure to the crypto market, providing investors with new opportunities to participate in the growing digital asset sector. As the market evolves and more innovative financial products are introduced, it will be interesting to see how the cryptocurrency landscape continues to develop.
