TMCnet News

ProShares Launches First ETF to Target 2x Daily Bitcoin Returns
[April 02, 2024]

ProShares Launches First ETF to Target 2x Daily Bitcoin Returns


Today, ProShares, a premier provider of ETFs, is launching ProShares Ultra Bitcoin ETF (BITU), the first ETF to target 2x daily bitcoin returns. At the same time, ProShares is also launching ProShares UltraShort Bitcoin ETF (SBIT), the first ETF to target -2x daily bitcoin returns.

"BITU and SBIT are designed to address the challenge of acquiring leveraged or short exposure to bitcoin, which can be onerous and expensive," said ProShares CEO Michael L. Sapir. "BITU offers investors the opportunity to pursue magnified bitcoin returns or target a level of exposure with less money at risk. SBIT allows investors to seek to profit when the price of bitcoin drops or hedge their bitcoin exposure."

BITU and SBIT, listed on the New York Stock Exchange, are designed for investors who want to target leveraged or short bitcoin exposure with the accessibility, convenience and efficiency of an ETF.

ProShares is the world's leader in geared (leveraged and inverse) ETFs. ProShares is also a leader in crypto-linked ETFs, having launched the first U.S. bitcoin-linked ETF (BITO) in October 2021. Since then, ProShares has launched the first U.S. short bitcoin-linked ETF (BITI), the first U.S. ETF that targets the performance of ether (EETH) and the first short ether-linked ETF (SETH), as well as ETFs targeting the combined performance of bitcoin and ether in equal weight (BETE) and market cap weight (BETH). These ETFs, including BITU and SBIT, do not invest directly in cryptocurrencies.

About ProShares

ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with over $70 billion in assets. The company is a leader in strategies such as crypto-linked, dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.

Investing involves risk, including the possible loss of principal. There is no guarantee any ProShares ETF will achieve its investment objective.

p> Geared ProShares ETFs seek daily investment results that correspond, before fees and expenses, to a multiple of (e.g., 2x or -2x) the daily performance of the underlying benchmark (the "Daily Target"). While the Funds have a daily investment objective, you may hold Fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance. For any holding period other than a day, your return may be higher or lower than the Daily Target. These differences may be significant. Smaller index gains/losses and higher index volatility contribute to returns worse than the Daily Target. Larger index gains/losses and lower index volatility contribute to returns better than the Daily Target. The more extreme these factors and the longer your holding period while these factors apply, the more your return will tend to deviate. Investors should consider periodically monitoring their geared fund investments in light of their goals and risk tolerance.



The ETFs invest in derivatives (swap agreements, futures contracts and similar instruments) that provide indirect exposure to bitcoin and ether and do not invest directly in bitcoin and ether. Bitcoin and ether are relatively new asset classes, and the market for bitcoin and ether is subject to rapid changes and uncertainty. Bitcoin and ether are subject to unique and substantial risks, such as rapid price swings and lack of liquidity, including as a result of changes in the supply of and demand for bitcoin and ether, statements by influencers and the media, and other factors. Bitcoin and ether are largely unregulated and may be more susceptible to fraud and manipulation than more regulated investments. Leveraged exposure to bitcoin will increase volatility. The value of an investment in the ETFs could decline significantly and without warning, including to zero. The ETFs may not be suitable for all investors.

BITO, EETH, BETH, and BETE are actively managed. The costs associated with rolling (buying and selling) futures and the impact of margin requirements, collateral requirements and other limits may have a negative impact on performance and prevent each Fund from achieving its objective. The price and performance of bitcoin futures and ether futures should be expected to differ from the current "spot" prices of bitcoin and ether (the prices of bitcoin and ether that can be purchased immediately). These differences could be significant.


These ProShares ETFs are non-diversified and entail certain risks, including risks associated with the use of derivatives (swap agreements, futures contracts and similar instruments), counterparty risk, imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. The ETFs are new and may have a limited number of market makers. There can be no assurance that the Funds will be successful or that an active market for shares will develop. Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in the ETF's summary and full prospectuses. Read them carefully before investing. Obtain them from your financial professional or visit ProShares.com.

ProShares are distributed by SEI Investments Distribution Co. ("SIDCO"), which is not affiliated with the funds' advisor or sponsor.


[ Back To TMCnet.com's Homepage ]