ProShares launched two exchange-traded funds (ETFs) that search to ship 2x returns on the day by day value motion of Solana (SOL) and XRP, including leveraged publicity to the agency’s increasing roster of crypto-linked merchandise, in accordance with a July 15 announcement.
The ProShares Extremely Solana ETF (SLON) targets 200% of Solana’s day by day efficiency, whereas the ProShares Extremely XRP ETF (UXRP) goals for a similar leverage on XRP.
Each funds monitor futures contracts somewhat 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 technique to “overcome the challenges of buying leveraged publicity” to 2 blockchains that buyers steadily 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 investors to manage their positions actively as a result of the merchandise reset publicity day by day. Beneficial properties compound throughout robust single‑course strikes, however losses enlarge simply as shortly when costs reverse.
ProShares warned within the prospectus that SLON and UXRP are appropriate for skilled market individuals who perceive the mechanics of day by day leverage and the potential for erosion in risky markets. The funds cost administration charges according to 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 gives 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 instantly in digital belongings. As a substitute, they maintain money‑settled futures traded on regulated exchanges.
Opponents have filed for merchandise that monitor different digital asset pairs. Nonetheless, regulatory clearance stays restricted to futures-based constructions that keep away from direct custody points.
ProShares mentioned it can proceed to judge demand for added leveraged or inverse publicity as market infrastructure matures and regulatory steering evolves.
