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ProShares, one of the top ETF providers in the US, has pulled the plug on its proposal for a 2x leveraged Bitcoin ETF.<\/p>\n<\/div>\n<\/div>\n
ProShares has announced<\/a> it will withdraw its proposal for a 2x leveraged Bitcoin Exchange-Traded Fund (ETF), the ProShares UltraBitcoin Strategy ETF. T<\/p>\n This sudden change of course comes less than two months after the asset management firm initially filed with the US Securities and Exchange Commission (SEC) to launch the ETF.<\/p>\n 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.<\/p>\n The decision to withdraw the proposal for this first-of-its-kind Bitcoin ETF\u2014intended to provide investors with exposure to Bitcoin<\/a> prices at double the daily return\u2014may come as a disappointment to many in the crypto space. ProShares is one of the leading providers of ETFs in the United States.<\/p>\n The reasons for the abrupt withdrawal were not disclosed in the letter. However, it’s possibly related to the ongoing scrutiny and hesitation from the SEC. <\/p>\n 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.<\/p>\n The underperformance illustrates the shortcomings of futures-based ETFs compared to potential spot ETFs.<\/p>\n<\/div>\n