BETE Profile
ProShares Trust is a fund designed to offer investors equal exposure to two leading digital assets: Bitcoin and Ether. The fund achieves this objective by investing in cash-settled futures contracts for these cryptocurrencies, specifically targeting front-month CME contracts and considering back-month contracts as well. The allocation between Bitcoin and Ether is evenly split at 50% each and is rebalanced on a monthly basis to maintain this equal exposure.
The fund employs a rolling strategy, whereby it rolls over its futures contracts each month as they approach expiration. This approach helps to ensure that the fund maintains continuous exposure to Bitcoin and Ether while minimizing the impact of contract expiration on the portfolio. Additionally, a portion of the fund's investments is allocated through a wholly-owned subsidiary based in the Cayman Islands, which is capped at 25% of the fund's net assets at the end of each quarter.
To manage its exposure and liquidity, the fund may also utilize other financial instruments such as ETFs, money market instruments, and reverse repurchase agreements. These tools help to maintain the desired level of exposure to Bitcoin and Ether and provide flexibility in managing the fund’s liquidity and investment strategy.
The cash settlement of Bitcoin and Ether futures contracts is based on the CME CF Bitcoin-Dollar Reference Rate and the CME CF Ether-Dollar Reference Rate, respectively. This ensures that the fund’s exposure reflects the underlying value of the cryptocurrencies as determined by these reference rates. Through its diversified approach and strategic use of financial instruments, ProShares Trust aims to provide investors with a balanced and efficient way to gain exposure to Bitcoin and Ether.
|
