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Double Trouble: 2x Bitcoin ETF Gets Axed

Fri, 06/02/2023 - 18:44
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Alex Dovbnya
ProShares, one of the top ETF providers in the U.S., has pulled the plug on its proposal for a 2x leveraged Bitcoin ETF
Double Trouble: 2x Bitcoin ETF Gets Axed
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ProShares has announced it will withdraw its proposal for a 2x leveraged Bitcoin Exchange-Traded Fund (ETF), the ProShares UltraBitcoin Strategy ETF. T

This sudden change of course comes less than two months after the asset management firm initially filed with the U.S. Securities and Exchange Commission (SEC) to launch the ETF.

It's important to note that the Amendment for the proposed ETF was yet to be declared effective and no securities have been sold under it.

The decision to withdraw the proposal for this first-of-its-kind Bitcoin ETF—intended to provide investors with exposure to Bitcoin prices at double the daily return—may come as a disappointment to many in the crypto space. ProShares is one of the leading providers of ETFs in the United States.

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The reasons for the abrupt withdrawal are not disclosed in the letter. However, it's possibly related to the ongoing scrutiny and hesitation from the SEC. 

ProShares' Bitcoin futures exchange-traded fund (ETF), BITO, has underperformed against Bitcoin's price appreciation, largely due to structural costs associated with its futures contracts, according to a report from digital asset research firm K33 Research.

The underperformance illustrates the shortcomings of futures-based ETFs compared to potential spot ETFs

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at