JULISHA CRYPTO & MARKETS NEWS ROUND-UP
ProShares has submitted an application to launch Bitcoin hedge ETFs tied to the S&P 500, Nasdaq 100, and gold.
According to the SEC filing, these Bitcoin-hedged ETFs will strategically pair long positions in stocks or gold with short positions on the US dollar, complemented by long positions in Bitcoin through futures contracts.
The ETF will allow ProShares to harness Bitcoin’s potential as an alternative asset while maintaining exposure to traditional financial markets. Importantly, the fund does not involve direct investments in Bitcoin itself.
Observers see the filings as an indication of the growing market confidence in flagship crypto projects. REX had also proposed a new exchange-traded fund (ETF) aimed at investing in convertible bonds issued by companies that hold Bitcoin in their corporate treasuries.
The filing outlines more details on how the ProShare Bitcoin hedged ETFs will look. Bitcoin futures contracts will execute the short US dollar/long Bitcoin component. The setup establishes a currency hedge against the US dollar exposure associated with S&P 500 stock positions. The hedge will shield against the fluctuation in dollar value relative to Bitcoin.
Current events show Bitcoin’s increasing dominance within traditional finance spheres. Several traditional operators, mainly financial institutions, have devised ways of blending Bitcoin and other digital assets into mainstream investment strategies.
The Bitcoin market has enjoyed a stable and comfortable environment, triggering its growth. Political developments, especially digital asset stakeholders who overtly supported the US president-elect, Donald Trump, have boosted crypto prospects.
Trump has promised a favorable crypto environment during his administration, including establishing the National Bitcoin Reserve. The sentiments have raised optimism, driving the Bitcoin price to over $100,000.
One of the most notable developments this year was the launch of 11 spot Bitcoin ETFs in the United States on January 11.
The ETFs allowed investors indirect ownership of Bitcoins without physical custody. The Bitcoin ETF market share has grown past $36 billion on the back of investors seeking crypto exposure.
In other News, Volatility Shares recently submitted a proposal to the U.S. Securities and Exchange Commission to create an ETF based on Solana futures. This filing presents new ways for traders to take advantage of Solana (SOL) price changes in both directions. The proposed ETF will be offered in levels of leverage, including 1x, 2x, and -1x, according to risk preference.
The filing is important because investors who want to bet on Solana’s future have more options. Solana is known for its blockchains, which allow for speedy transactions and low fees. Adding the -1x inverse product also allows investors to make money if Solana’s price drops.
Volatility Shares has played a leading role in achieving the approval and launch of Ethereum (ETH) futures ETFs and is dedicated to continuing to pursue new concepts within this space. The company has also led in the creation of asset-class blended ETFs, such as BTC+ETH and S&P+VIX, that can ease the process of diversification for the modern investor.
The price of Solana has just dropped by 2.87%. Other cryptocurrencies like BNB and XRP have already surpassed Solana in the rankings. Analysts predicted that the price of Solana would surge in the future, particularly if the SEC approves a spot Solana ETF. Market experts believe this approval could take the price of SOL up to $1,000.
This filing might help approve spot Solana ETFs, which would let people invest directly in the cryptocurrency instead of depending on future contracts. Balchunas said Litecoin and HBAR ETFs might get approved before Solana, making this filing important in the industry.
This proposal is not the first time Volatility Shares LLC has tried to enter the crypto ETF market. Before this, several companies, like VanEck and 21Shares, applied for spot Solana ETFs, but the SEC has not approved any of these products during its current rules.
Considering these challenges, even applying for a Solana futures ETF may be the best decision for Volatility Shares, especially given that regulation changes will likely arrive soon since new leadership at the SEC should be on their way within days.
Meanwhile, Bitcoin mining has since ticked the box Elon Musk set three years ago. He said at least 50% of its energy must come from renewable sources. Well, miners just hit 54%.
This should, in theory, be enough for Tesla to dust off its Bitcoin payment system, as we kindly suggested in the past.
Back in May 2021, Elon pulled the plug on Bitcoin payments for Tesla, citing environmental concerns. His issue? Mining Bitcoin was guzzling electricity, much of it coming from coal and other dirty sources. “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining,” Elon said at the time.
The big question now is whether Tesla will reinstate Bitcoin payments. Technically, Elon’s condition has been met. The Bitcoin network has hit 54% renewables, so what’s stopping Tesla from flipping the switch?
Part of the hesitation could be tied to politics. Elon is now rubbing elbows with Donald Trump, who’s back in the White House. Elon reportedly donated $277 million to Trump’s presidential campaign and is set to head the Department of Government Efficiency (D.O.G.E).
This new role gives him unlimited access to the Oval, which could mean smoother sailing for Bitcoin and other digital assets. Trump, for his part, has promised not to introduce any policies that could crash Bitcoin. That’s music to the ears of Bitcoin fans—and probably Elon, too.
Finally, Gold is set for an unprecedented rally in 2025 as Bitcoin continues its slow activity as the year ends.
Bitcoin enjoyed a spark towards the latter end of 2024, with the asset bursting out after a Trump-fuelled rally.
It is no surprise that it did a remarkable job hitting over $100k this year. While Bitcoin did about 50% since November 3, other assets followed suit, with Dogecoin posting double its price.
While the crypto assets enjoyed a stellar run towards the end of the year, gold has been dominating, having itself a wonderful year. Prices of the precious metal surged by 28%, pushing financial investors back to the asset as a safe haven amid rising geopolitical and economic tensions.
Gold started the year at $2014, having itself a wonderful year amid several highs before hitting $2,719 in late November.
Usually, most assets in the financial market experience a pullback after a huge rally like gold’s. Investors are conversant with the market, more reason why they remain unfazed by the asset’s recent drop to around $2,603. But with many Western countries starring inflation in the eye amid other geopolitical issues, investors are predicting a great 2025 for gold.
Gold has usually done well, especially when investors shift their funds into the asset while relying less on bond markets and equity. The popular notion is that gold also serves other purposes, giving it an inherent value. For instance, aside from its use as a currency, the asset is also used to mark jewelry and other technological products.
Investors are skeptical about the current global situation getting better next year. With Donald Trump preparing to enter the White House, experts are expecting several conflicts.
Financial Experts expect Gold users to consolidate their positions instead of selling, as they believe the asset could hit $3,070 by 2025.