The race for launching exchange-traded funds (ETFs) based on cryptocurrencies is heating up, as several asset managers have filed applications with the U.S. Securities and Exchange Commission (SEC) for Bitcoin and Ether ETFs.
ProShares and Bitwise are among the firms that have petitioned the SEC for a Bitcoin and Ether equal weight ETF, which would invest in futures contracts referencing the two largest cryptocurrencies by market capitalization.
The proposed ETF would hold monthly extended positions in the Bitcoin and Ether futures contracts closest to their maturity dates. The ETF would not invest directly in Bitcoin or Ether, but rather in cash-settled contracts that trade on the Chicago Mercantile Exchange (CME).
ProShares has also filed for a short Ether strategy ETF, which would seek to profit from the decline in the price of Ether.
The filings come after several spot Bitcoin ETF applications were submitted to the SEC in recent weeks, following the approval of a Bitcoin futures ETF by the Canadian regulators.
The SEC has not yet approved any cryptocurrency ETFs in the U.S., but the growing interest from institutional investors and asset managers suggests that the demand for such products is high.