Wall Street Seizes Bitcoin Volatility With Leveraged, Short ETFs

The frenzy surrounding the launch of spot Bitcoin exchange-traded funds has yet to lose steam as Wall Street’s latest entrant offers supercharged versions of such products.

ProShares on Tuesday launched ProShares Ultra Bitcoin ETF (ticker BITU), which tracks two times the daily performance of Bitcoin via the Bloomberg Bitcoin Index, and ProShares UltraShort Bitcoin ETF (SBIT), which tracks the inverse of that, according to a release. Each has an expense ratio of 95 basis points.

The twin launch comes after the successful debut of nearly a dozen Bitcoin ETFs directly investing in the token itself in January has hauled in $12 billion of net inflows and nearly $60 billion in assets. What makes the two new ProShares’ ETFs stand out is that they offer magnified returns on spot Bitcoin and not the futures market.

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The stellar inflows highlight the seemingly insatiable appetite for spot Bitcoin ETFs and underscores the growing popularity of ETFs as vehicle for frictionless trading. More are coming such as the newly converted Hashdex Bitcoin ETF (DEFI) and, if approved, Grayscale Bitcoin Mini Trust.

“It demonstrates how ETF managers can be an opportunistic bunch by trying to leverage off the positive sentiment as much as possible,” said Michael O’Riordan, founding partner of Blackwater, an ETF consulting firm.