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Cryptopolitan 2024-12-28 13:20:18

ProShares proposes Bitcoin hedge ETFs linked to S&P 500, Nasdaq 100, and gold

ProShares has submitted an application to launch Bitcoin hedge ETFs tied to the S&P 500, Nasdaq 100, and gold. According to the SEC filing, these Bitcoin-hedged ETFs will strategically pair long positions in stocks or gold with short positions on the US dollar, complemented by long positions in Bitcoin through futures contracts. The ETF will allow ProShares to harness Bitcoin’s potential as an alternative asset while maintaining exposure to traditional financial markets. Importantly, the fund does not involve direct investments in Bitcoin itself. Observers see the filings as an indication of the growing market confidence in flagship crypto projects. REX had also proposed a new exchange-traded fund (ETF) aimed at investing in convertible bonds issued by companies that hold Bitcoin in their corporate treasuries How will the ProShare Bitcoin-hedged ETFs function? The filing outlines more details on how the ProShare Bitcoin hedged ETFs will look. Bitcoin futures contracts will execute the short US dollar/long Bitcoin component. The setup establishes a currency hedge against the US dollar exposure associated with S&P 500 stock positions. The hedge will shield against the fluctuation in dollar value relative to Bitcoin. Current events show Bitcoin’s increasing dominance within traditional finance spheres. Several traditional operators, mainly financial institutions , have devised ways of blending Bitcoin and other digital assets into mainstream investment strategies. Vocal financial advisory personalities, including Robert Kiyosaki, have also stressed that Bitcoin is yet to reach its peak, claiming that it will hit $350,000 by the end of 2025. Bitcoin ETF markets soared past $36 billion in investor capital The Bitcoin market has enjoyed a stable and comfortable environment, triggering its growth. Political developments, especially digital asset stakeholders who overtly supported the US president-elect, Donald Trump, have boosted crypto prospects. Trump has promised a favorable crypto environment during his administration, including establishing the National Bitcoin Reserve . The sentiments have raised optimism, driving the Bitcoin price to over $100,000. One of the most notable developments this year was the launch of 11 spot Bitcoin ETFs in the United States on January 11. The ETFs allowed investors indirect ownership of Bitcoins without physical custody. The Bitcoin ETF market share has grown past $36 billion on the back of investors seeking crypto exposure. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

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