ProShares launched two exchange-traded funds (ETFs) that search to ship 2x returns on the each day value 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 observe 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 strategy to “overcome the challenges of buying leveraged publicity” to 2 blockchains that buyers ceaselessly cite for high-throughput funds and decentralized functions.
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 buyers to handle their positions actively as a result of the merchandise reset publicity each day. Good points compound throughout sturdy single‑course strikes, however losses amplify simply as rapidly when costs reverse.
ProShares warned within the prospectus that SLON and UXRP are appropriate for knowledgeable market members who perceive the mechanics of each day leverage and the potential for erosion in risky 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 12 months, 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 straight in digital belongings. As an alternative, they maintain money‑settled futures traded on regulated exchanges.
Opponents have filed for merchandise that observe 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 extra leveraged or inverse publicity as market infrastructure matures and regulatory steerage evolves.
