Investors seeking exposure to cryptocurrencies through ETFs have some new options over the next couple of days.
On Wednesday, ProShares will launch three new futures-based funds which track the price of Ripple’s XRP cryptocurrency token without holding the assets. The firm’s registration was not rejected by the SEC during the review process, enabling the funds to launch under implied approval.
The trio of funds - Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF - are not the first funds to provide leveraged exposure to XRP. That milestone was claimed by Teucrium Investment Advisors’ XRP ETF earlier this month.
Derivatives marketplace CME Group announced last week plans to launch XRP futures on May 19, pending regulatory review.
"XRP was purpose-built for real financial use cases and today facilitates global value transfers through the fast, low-cost XRP Ledger," said Sal Gilbertie, CEO of Teucrium. "The Teucrium 2x Daily Long XRP ETF (XXRP), reached $35 million in AUM in its first 10 trading days — highlighting strong investor demand for regulated access to leading digital assets. The listing of regulated XRP futures by CME Group marks another milestone in the ecosystem's evolution, and we intend to be active participants in supporting that growth."
Meanwhile, for investors who want the familiarity of Bitcoin, two new ETFs are launching today (April 29) by Amplify ETFs.
The actively managed Amplify Bitcoin 24% Premium Income ETF (BITY) and Amplify Bitcoin Max Income Covered Call ETF (BAGY). The process for both ETFs includes buying long Bitcoin exposure through ETPs and synthetic options, writing weekly covered calls, rolling expiring contracts, and seeking to pay high monthly distributions.
“Bitcoin’s volatility is a challenge and opportunity for investors,” said Christian Magoon, CEO of Amplify ETFs. “BAGY and BITY represent the next generation of weekly Bitcoin option income strategies as they seek to deliver attractive income while offering upside exposure to Bitcoin’s growth potential.”
The funds are actively managed by Amplify Investments, with Kelly Intelligence and Penserra Capital Management serving as sub-advisers.
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