Direxion, ProShares seek ETFs that would hold BTC and ETH futures

The dual-crypto futures proposals come after various fund groups filed in recent days for funds that would only hold ETH futures

article-image

Forance/Shutterstock modified by Blockworks

share

Direxion and ProShares have filed for ETFs that, if approved, would hold futures contracts tied to both bitcoin and ether.

With Wednesday’s filings, Direxion and ProShares have put a different type of crypto-centric investment product in front of the US Securities and Exchange Commission. 

The SEC filings came after various firms — including ProShares — revealed plans in recent days to launch ETFs that would focus only on ether (ETH) futures. 

Two sources directly familiar with the latest ether futures ETF filings told Blockworks Wednesday the SEC has indicated its readiness to publicly consider such a product — a reversal from the US securities regulator’s apparent stance in May

Read more: SEC now ready to consider ETH futures ETFs, sources say — but what’s changed?

The SEC allowed ETFs that hold bitcoin futures contracts to come to market in 2021. The first to launch, the ProShares Bitcoin Strategy ETF (BITO), gained $1 billion in assets under management in its first few days. 

Aside from ProShares, Volatility Shares, Grayscale Investments, VanEck, Bitwise and Roundhill Investments, have filed for ETH futures ETFs over the past week.  

“It seems illogical for the SEC to allow ETFs holding CME-traded bitcoin futures, but not ones owning CME-traded ether futures,” Geraci said of the ETH futures ETF filings. “Given the past history of these filings, it’s difficult to speculate on how the SEC will respond.”

But now, ProShares and Direxion seek to combine an investment type already allowed in US ETFs with one yet to be permitted in such wrappers. The latest proposed funds would not hold BTC or ETH directly.

In the absence of a spot bitcoin ETF — the SEC has rejected every proposal for such a product to date — fund issuers have looked to get creative in an effort to allow investors to get crypto exposure through familiar vehicles.

Neena Mishra, director of ETF research for Zacks Investment Research, told Blockworks last month that fund providers constantly experiment with new products to see what resonates with investors.  

“This is why we continue to see so many niche, interesting, and sometimes weird products,” she said at the time.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Morpho Blue is designed in a way where risk management is externalized, Morpho Labs’ CEO said

article-image

Snowflake, a cloud-based data warehouse solution, has partnered with Dune to make curated blockchain data available to its clients

article-image

Crypto is fast and it’s only getting faster as bitcoin threatens to retest its own highs set more than two years ago

article-image

The settlement ends the legal battle over eth.link, a domain once owned by imprisoned developer Virgil Griffith

article-image

TBC President Lee Bratcher told Blockworks he’s “confident” about the Council’s case against the DOE

article-image

The Monday trading volumes total passes the previous high mark set on the fund’s first day of trading nearly seven weeks ago