ProShares Seeks Waiver From CME for Position Limits on New Bitcoin Futures ETF: Report

If CME doesn’t yield, ProShares’ options include shifting assets into later-dated contracts or potentially investing in crypto-related equities.

Oct 24, 2021 at 4:53 p.m. UTC
Updated Oct 25, 2021 at 4:42 p.m. UTC

ProShares, the sponsor of the first-ever exchange-traded fund (ETF) backed by bitcoin futures, has applied for a waiver to limit the amount of bitcoin futures a buyer can purchase in the new fund, Barron’s reported.

  • Starting with the November front-month contract, the Chicago Mercantile Exchange (CME) will limit the number of futures a buyer can buy in the new ETF to 4,000, dropping to 2,000 three days before expiration. As each contract represents five bitcoin, total ownership is limited to 20,000 bitcoin.
  • To get around this limit, ProShares has already split its futures portfolio, with half in October and half in November.
  • CEO Michael Sapir told Barron’s that if the CME doesn’t grant the waiver, ProShares could shift assets into later-dated contracts, structured notes or swaps. Barron’s also noted that ProShares’ prospectus for the ETF says the fund could also invest in equities with crypto exposure.

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