A Maryland-based exchange-traded fund (ETF) firm has filed to launch two new bitcoin futures-based products.
According to a Form S-1 dated September 27, ProShares Capital Management wants to create two bitcoin-tied funds: the ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF. Like other proposed ETFs that have emerged in recent months, ProShares isn’t planning to buy direct stakes in the cryptocurrency; rather, it intends to create exposure through derivatives contracts.
Per the filing, ProShares is aiming for a maximum aggregate offering price of $1 million, priced at $25 per share, with a plan to have it listed on the NYSE Arca exchange.
As the filing acknowledges, the market for bitcoin-tied derivatives is still nascent and early-stage.
"Bitcoin futures contracts have only recently been listed for trading and have a very limited trading history. There can be no assurance that an active trading market for bitcoin futures contracts will develop or be maintained," the firm wrote.
Even still, that market is starting to take shape, if not slowly.
Disclosure: CME Group is an investor in Digital Currency Group, CoinDesk's parent company.
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.