ProShares launched two exchange-traded funds (ETFs) that search to ship 2x returns on the each day worth motion of Solana (SOL) and XRP, including leveraged publicity to the agency’s increasing roster of crypto-linked merchandise, in keeping with a July 15 announcement.
The ProShares Extremely Solana ETF (SLON) targets 200% of Solana’s each day efficiency, whereas the ProShares Extremely XRP ETF (UXRP) goals for a similar leverage on XRP.
Each funds monitor futures contracts fairly than holding the underlying tokens, mirroring the construction ProShares makes use of for its Bitcoin and Ethereum choices.
CEO Michael Sapir mentioned the brand new ETFs present merchants with a option to “overcome the challenges of buying leveraged publicity” to 2 blockchains that traders often cite for high-throughput funds and decentralized purposes.
He added that the broader adoption of Solana and XRP inspired ProShares to increase its suite past Bitcoin (BTC) and Ethereum (ETH).
Broader leveraged crypto ETF line
Leveraged crypto ETFs require traders to handle their positions actively as a result of the merchandise reset publicity each day. Positive factors compound throughout sturdy single‑route strikes, however losses amplify simply as rapidly when costs reverse.
ProShares warned within the prospectus that SLON and UXRP are appropriate for knowledgeable market individuals who perceive the mechanics of each day leverage and the potential for erosion in unstable markets. The funds cost administration charges in keeping with the agency’s earlier 2x funds.
ProShares broke floor in October 2021 with BITO, the primary US Bitcoin futures‑linked ETF, and adopted with BITI, the primary inverse Bitcoin ETF. Final yr, the agency listed EETH, the primary ETF tied to Ethereum futures, and SETH, an inverse Ethereum fund.
Together with SLON and UXRP, ProShares now affords 12 crypto-linked ETFs and three crypto-linked mutual funds, with over $1.5 billion unfold throughout its leveraged lineup.
The corporate reiterated that none of its funds make investments straight in digital belongings. As a substitute, they maintain money‑settled futures traded on regulated exchanges.
Rivals have filed for merchandise that monitor different digital asset pairs. Nevertheless, regulatory clearance stays restricted to futures-based buildings that keep away from direct custody points.
ProShares mentioned it is going to proceed to guage demand for added leveraged or inverse publicity as market infrastructure matures and regulatory steering evolves.
