# EDGAR Filing Document

**Accession Number:** 0001174610
**File Stem:** 0001683863-25-005706
**Filing Date:** 2025-7
**Character Count:** 67282
**Document Hash:** 8dcf2437a0bff8080d3e5034bb21b298
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683863-25-005706.hdr.sgml**: 20250903

**ACCESSION NUMBER**: 0001683863-25-005706

**CONFORMED SUBMISSION TYPE**: CORRESP

**PUBLIC DOCUMENT COUNT**: 15

**FILED AS OF DATE**: 20250711

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROSHARES TRUST
- **CENTRAL INDEX KEY:** 0001174610

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** CORRESP

**BUSINESS ADDRESS:**
- **STREET 1:** 7272 WISCONSIN AVENUE
- **STREET 2:** 21ST FLOOR
- **CITY:** BETHESDA
- **STATE:** MD
- **ZIP:** 20814
- **BUSINESS PHONE:** 240-497-6400

**MAIL ADDRESS:**
- **STREET 1:** 7272 WISCONSIN AVENUE
- **STREET 2:** 21ST FLOOR
- **CITY:** BETHESDA
- **STATE:** MD
- **ZIP:** 20814

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** XTRASHARES TRUST
- **DATE OF NAME CHANGE:** 20030409

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROFUNDS ETF TRUST
- **DATE OF NAME CHANGE:** 20020531

![](gvhx4q4pgxlgybfiwjvvi.jpg)

**<u>VIA EDGAR</u>**

July 11, 2025

U.S. Securities and Exchange Commission

Division of Investment Management

100 F Street, N.E.

Washington, D.C. 20549

Re: ProShares Trust (the "Trust") (File Nos. 811-21114 and 333-89822)

Dear Mr. Rosenberg:

On January 17, 2025, the Trust filed with the U.S. Securities and Exchange Commission (the "Commission") Post-Effective Amendment Nos. 320 and 321 under the Securities Act of 1933, as amended (the "1933 Act") and Amendment Nos. 329 and 330 under the Investment Company Act of 1940, as amended (the "1940 Act") to the Trust's registration statement on Form N-1A (collectively, the "Amendments"). The Amendments were filed to add four new series, ProShares Solana ETF, ProShares Short Solana ETF, ProShares Ultra Solana ETF, and ProShares UltraShort Solana ETF (each, a "Fund," and collectively, the "Funds").

We received comments from you relating to the Amendments, dated February 24, 2025. For your convenience and reference, we have summarized the comments in this letter and provided the Trust's response to each such comment below. The Trust will file Post-Effective Amendments to the registration statement pursuant to Rule 485(b) under the 1933 Act (collectively, the "B Filings"). The B Filings are being made for the purpose of incorporating modifications to the Funds' prospectuses and statements of additional information in response to your comments to the Amendments as described in this letter and to make other minor and conforming changes. Capitalized terms not otherwise defined herein will have the same meaning as in the Amendments.

**<u>Prospectus:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**Comment:** Please supplementally indicate when each Fund expects to launch.

**Response:** The Advisor currently anticipates launching ProShares Ultra Solana ETF shortly after effectiveness. The other Funds do not currently have a scheduled launch date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Comment:** Please revise the registration statement to reflect the principal and non-principal strategies of the Funds on the day the registration statement is anticipated to become effective. Please note that the staff is not aware of "Solana futures contracts" that trade on CFTC registered exchanges as of the date of this letter.

**Response:** The Trust respectfully declines to make a revision to the registration statement regarding the principal and non-principal strategies of the Funds. The Trust notes that subsequent to the Staff's comment Solana futures contracts began trading on CFTC registered exchanges.

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3.**Comment:** The registration statement appears to use the term "Solana" to refer to the native crypto asset of the Solana blockchain as well as the Solana blockchain itself. Please revise the registration statement to use the term "SOL" when referring to the native crypto asset of the Solana blockchain.

**Response:** The Trust has revised the registration statement so that the term "SOL" is used when referring to the native crypto asset of the Solana blockchain.

4.**Comment:** Please further disclose that SOL may be determined to be offered and sold as a security under federal or state securities laws, as appropriate.

**Response:** The Trust confirms the requested disclosures are included or will be included in the section titled "Principal Risks – Solana Risk" in the summary prospectus as follows:

Legal or regulatory changes may negatively impact the operation of the Solana Network or restrict the use of SOL. For example, if SOL were determined or were expected to be determined to be offered and sold as a security under the federal securities laws, it is possible certain trading venues would no longer facilitate trading in SOL, trading in Solana futures may become significantly more volatile and/or completely halted, and the value of an investment in the Fund could decline significantly and without warning, including to zero.

The Trust also confirms the requested disclosures are included in the statutory prospectus, specifically in the section titled "Additional Information Regarding Principal Risks – The regulatory environment relating to SOL and Solana futures" which states the following:

The regulation of SOL, digital assets, digital asset trading venues, and related products and services continues to evolve. The inconsistent and sometimes conflicting regulatory landscape may make it more difficult for SOL businesses to provide services, which may impede the growth of the SOL economy and have an adverse effect on adoption of SOL. In addition, certain SOL businesses may be operating out of compliance with regulations. Future regulatory changes or enforcement actions by regulatory authorities may alter, perhaps to a material extent, the ability to buy and sell SOL and Solana futures. Similarly, future regulatory changes or enforcement actions could impact the ability of a Fund to achieve its investment objective or alter the nature of an investment in the Fund or the ability of the Fund to continue to operate, as planned. For example, if SOL were determined or were expected to be determined to be offered or sold as a security under the federal securities laws or state securities laws, it is possible certain SOL trading venues would no longer facilitate trading in SOL. As a result, trading in Solana futures may be completely halted or otherwise disrupted, or become significantly more volatile, Solana futures may become illiquid and/or lose significant value, and a Fund may have difficulty unwinding or closing out its Solana futures contracts. In that event, the value of an investment in a Fund could decline significantly and without warning, including to zero. There is no guarantee that security futures on SOL would begin trading on any particular timeframe or at all or that a Fund would be able to invest in such instruments. The determination that SOL is a security and the related impacts on Solana futures contracts may result in extraordinary expenses for a Fund.

5.**Comment:** Please disclose, with sufficient specificity and detail, the types of adverse consequences for the Fund and its shareholders if SOL is determined to be offered and sold as a security under federal or state securities laws.

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**Response:** The Trust confirms the requested disclosures are included or will be included as noted above in response to Comment 4.

6.**Comment:** With respect to the Solana ETF, please disclose how the Fund is determining the "performance of solana" as disclosed under the principal investment strategy section.

**Response:** The Trust has revised the Fund's principal investment strategy to note that the Fund will measure the performance of SOL using the Bloomberg Solana Index.

7.**Comment:** With respect to the UltraShort Solana ETF, Short Solana ETF, and Ultra Solana ETF, the investment objectives include a bracket around "[Solana Index]". Please disclose and specifically identify the indices the Funds intend to use for purposes of their investment objectives.

**Response:** The Trust has revised each Fund's investment objective to specify the Bloomberg Solana Index.

8.**Comment:** Please bold the following language which precedes the fee table: "You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below."

**Response:** The Trust has revised the registration statement to bold the requested language.

9.**Comment:** With respect to the fee waiver/reimbursement of the UltraShort Solana ETF, Short Solana ETF, and Ultra Solana ETF:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Please disclose in FN 2 that the waiver will remain in place for one year after effectiveness of the registration statement and that the fee waiver may only be terminated by the board within that one year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Please also disclose the recoupment terms of the fee waiver in FN 2.

**Response:** The Trust has revised the disclosure to remove references to a fee waiver or reimbursement.

10.**Comment:** Please specifically disclose the reference assets the Funds will use for the swap agreements that will provide exposure to SOL.

**Response:** The Trust has removed all references to swap agreements from the summary prospectus.

11.**Comment:** With respect to the Fund's use of swap agreements, please supplementally inform the staff of the counterparties the Fund expects to use and what percentage of the Fund's assets and investment exposure are expected to be related to each of these counterparties. If exposure to a particular counterparty is deemed to be material, please identify the counterparty in the prospectus and file the agreement with the counterparty as an exhibit to the registration statement.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

12.**Comment:** If notional exposure to a particular counterparty is likely to exceed 20% of the value

of the Fund's assets, if applicable, please disclose: (i) that the counterparty is subject to the informational requirements of the Exchange and in accordance with such requirements files reports and other information with the SEC; and (ii) the name of any national securities exchange on which the counterparty's securities are listed, stating that reports (and where the counterparty is subject to Sections 14(a) and 14(c) of the Exchange Act, proxy and information statements) and

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other information concerning the counterparty can be inspected at such exchanges. If the foregoing is not applicable, please advise how investors will be provided with similar information.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

13.**Comment:** To the extent the Fund will have more than 20% exposure to any swap counterparty, for such counterparties that are subsidiaries of publicly-traded companies for which there is sufficient market interest and publicly available information, please disclose whether the debts of such securities will be recourse to the parent.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

14.**Comment:** Please disclose how the swap counterparties are likely to hedge their exposure and what will occur if a counterparty terminates the relationship and there are only a limited number of other counterparties available.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

15.**Comment:** Please ensure that all material features of the contemplated swap agreements have been disclosed.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

16.**Comment:** Please revise disclosure responsive to Item 9 to more fully explain how the Adviser determines the swaps' notional exposure for a particular day, the impact that notional exposure would have on Fund returns, and the potential costs associated with entering into new swaps to maintain a Fund's exposure to SOL (as applicable).

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

17.**Comment:** Please confirm that the Funds intend to use a relative value-at-risk ("VaR") in complying with Rule 18f-4 under the Investment Company Act of 1940 ("Investment Company Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Please provide hypothetical VaR calculations demonstrating how the Funds anticipate being able to achieve their respective objective while remaining in compliance with the relative VaR test under Rule 18f-4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Please disclose the designated reference portfolio (index) that the Funds plans to use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Please confirm that the Funds' designated reference portfolio is unleveraged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Please supplementally confirm that the Funds' will be using a relative VaR test under Rule 18f- 4.

**Response:** The Trust confirms that each Fund intends to comply with Rule 18f-4 at the time the Fund is launched and utilize a relative VaR test. The requested hypothetical VaR calculations are provided under a separate cover. The Trust respectfully declines to disclose the designated reference portfolio in the registration statement, as such disclosures are not required by Form N- 1A nor material to an investor. However, the Trust confirms supplementally that each Fund intends

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to use the Bloomberg Solana Index as its designated reference portfolio for purposes of compliance with Rule 18f-4. The Trust confirms that the Bloomberg Solana Index is unleveraged.

18.**Comment:** If the Fund intends to invest in derivatives whose exposure to SOL is not through physical SOL (e.g., through a pooled investment vehicle which seeks exposure to SOL), then please elaborate on the potential differences between returns based on the price of SOL vs. SOL linked instruments, e.g., due to divergence in prices or potential costs associated with derivatives investing.

**Response:** The Trust has revised its disclosure to remove references to obtaining exposure to SOL by investing in derivatives that provide exposure to SOL through a pooled investment vehicle from the summary prospectus.

19.**Comment:** Please supplementally describe general policies and procedures related to how the Adviser, administrator and/or Chief Compliance Officer will monitor trades or conflicts of interest regarding Fund personnel trades of crypto assets made against or ahead of the Fund purchase of crypto assets ETPs. Please describe changes to the Fund's Code of Ethics to take into account such crypto assets transactions, if any.

**Response:** The Trust confirms that the Funds' code of ethics will apply to transactions in SOL or SOL-linked investments/derivatives and that Access Persons, as defined in Rule 17j-1 of the Investment Company Act, will be required to pre-clear such transactions.

20.**Comment:** Please supplementally discuss the Fund's plans for liquidity management, including during both normal and reasonably foreseeable stressed conditions.

**Response:** As required by each Fund's Liquidity Risk Management Program, the Funds' liquidity program administrator will evaluate the liquidity of the Funds' investments under both normal and reasonably foreseeable stressed conditions. In doing so, the Liquidity Risk Manager will take into consideration factors such as (i) short-term and long-term cash flow projections, (ii) the Funds' money market instrument holdings, (iii) the Funds' concentration in certain investments, (iv) the Funds' access to borrowing and use of reverse repurchase agreements, (v) the size of the Funds' holdings and anticipated creations and redemptions, (vi) the capacity of counterparties to engage in such transactions, (vii) the relationship between the Funds' portfolio liquidity and the spread at which it is anticipated to trade, and (viii) the effect of the cash redemption basket on the overall liquidity of the Funds' portfolio.

21.**Comment:** Please advise whether you have had discussions with potential swap counterparties and what sort of margin requirements are being considered. Include an analysis of any impact margin requirements are expected to have on the ability of the Fund to implement its strategies.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

22.**Comment:** Please supplementally provide information about the Fund's discussions with potential authorized participants ("APs") or market makers, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Please explain the ability of APs and market makers to arbitrage the Fund's holdings in a manner that is expected to keep the Fund's market price in line with its NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Please explain what instruments the APs will use to arbitrage and whether there will be any impact from the difficulties with custodying these instruments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Please explain if there are any unique considerations/rules from the exchange on which the Fund plans to list that will impact the Fund's ability to pursue its investment strategy; interact with APs; or otherwise impact the Fund's operations.

**Response:** The Advisor is currently in discussions with potential authorized participants ("APs") and market makers in connection with the Fund's launch. The Trust expects that the Fund will have sufficient support from APs and market makers to facilitate effective arbitrage and secondary market trading.

Based on these discussions, the Trust understands that APs and market makers anticipate using a combination of Solana-based instruments to hedge and arbitrage the Fund's exposure. These instruments may include non-U.S.-listed exchange-traded products that provide exposure to SOL, Solana futures, and spot SOL transactions conducted through digital asset trading platforms.

While certain broker-dealers may face limitations in holding spot SOL directly in custody, the Trust understands that the APs and market makers expected to be most active in supporting the Fund have the operational capabilities to access and transact in the instruments necessary to support arbitrage. The Trust does not anticipate that custody of these instruments will present operational challenges that would materially impact the ability of APs or market makers to perform their functions.

The Advisor does not believe the Fund's strategy raises unique considerations that will impact the Fund's ability to pursue its investment strategy, interact with APs, or otherwise impact the Fund's operations. The Fund expects to list on NYSE Arca and comply with the listing requirements specified in Rule 5.2-E(j)(8).

23.**Comment:** Please disclose in more detail the risks associated with SOL swaps capacity risk. In particular, disclose that the Fund may not be able to achieve its investment objective and may experience significant losses if the Fund's ability to obtain exposure to SOL swaps is disrupted for any reason. In your response, please address what action the Adviser will take in such circumstances, and the impact of any disruption in the Fund's ability to obtain pure-play, leveraged and inverse exposure to SOL.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

24.**Comment:** An ETF may only suspend the redemption of creation units in accordance with Section 22(e) of the Investment Company Act and may only suspend the issuance of creation units for a limited time and only due to extraordinary circumstances. See Exchange-Traded Funds, Investment Company Act Release No. 33646, at pp. 56-59 (Sept. 25, 2019) (Adopting Release). Given that the Fund's investment objective involves gaining a market exposure to a single underlying asset, please address in your response whether the Fund will be able to continue to issue and redeem creation units where there exist market, regulatory or other issues affecting the liquidity, trading, settlement and/or valuation of SOL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Where applicable, please describe considerations with respect to the issuance of creation units separately from considerations with respect to the redemption of creation units. Please also include the following in your analysis: (1) Please describe the issues affecting the liquidity of SOL that would impact the Fund's ability to create and redeem; (2) a discussion of whether counterparties may be unwilling to enter into swap transactions if they are unable to hedge their exposure due to an underlying issue with SOL; (3) a description of the monitoring or other mechanisms that will be implemented to ensure that such market, regulatory or other issues do not translate into the Fund's inability to create and redeem creation units; (4) a description of the considerations that the Fund's board and the Adviser gave to the appropriateness of the Fund's investment objectives and strategies, given the narrow market exposure and potential issues with issuing and redeeming creation units.

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**Response:** Currently, the Advisor does not anticipate that market, regulatory, or other issues that impact the liquidity, trading, settlement or valuation of SOL would have a material negative impact on the ability of the Fund to issue and redeem creation units. Even in the event where SOL experiences disruptions on one or more trading platforms, the Advisor believes the Fund would be able to continue to accept orders for creation units and meet redemptions.

As required by Rule 22e-4(b)(1) and the Funds' Liquidity Risk Management Program (the "LRM Program"), the Funds' liquidity program administrator will evaluate the liquidity of the Funds' investments under both normal and reasonably foreseeably stressed conditions. In doing so, the Liquidity Risk Manager will take into consideration factors such as (i) short-term and long-term cash flow projections, (ii) the Funds' money market instrument holdings, (iii) the Fund's concentration, (iv) the size of a Fund's holdings and anticipated creations and redemptions in relation to the market for SOL, (v) the capacity of counterparties to engage in transactions, (viii) the relationship between a Fund's portfolio liquidity and the spread at which it is anticipated to trade, and (ix) the effect of the cash redemption basket on the overall liquidity of a Fund's portfolio.

Liquidity risks and the LRM Program are discussed with, and considered by, the Trust's Board of Trustees (the "Board"), as is the appropriateness of each Fund's investment strategy for an open- end fund.

With respect to swap agreements, the Trust notes that the Funds intend to primarily obtain exposure to Solana using Solana futures contracts and therefore have removed references to swap agreements from each Fund's summary prospectus.

25.**Comment:** Please disclose that purchases and redemptions of creation units primarily with cash, rather than through in-kind delivery of portfolio securities, may cause the Fund to incur certain costs. Please also disclose that these costs could include brokerage costs or taxable gains or losses that it might not have incurred if it had made redemption in-kind. In addition, please disclose that these costs could be imposed on the Fund, and thus decrease the Fund's net asset value, to the extent that the costs are not offset by a transaction fee payable by an AP.

**Response:** The Trust confirms the requested disclosures are included in each Fund's "Principal Risks – Cash Purchases and Redemption Risk".

**Cash Purchases and Redemption Risk** — The Fund expects to effect all of its creations and redemptions in cash rather than in-kind. Cash purchases and redemptions may increase transaction costs. The relatively high costs associated with obtaining inverse exposure to Solana futures contracts, particularly near contract expiration, may have a significant adverse impact on the performance of the Fund. Additionally, cash purchases and redemptions may cause the Fund to recognize a gain or loss.

26.**Comment:** The disclosure under the "Principal Investment Strategies" section states that the Fund's investment in the Subsidiary will not exceed 25% of the Fund's total assets at the quarter- end. Please also disclose here that the Fund will not achieve its investment objective at such times. Please add similar disclosure to other descriptions of the Funds' investments in subsidiaries.

**Response:** The Advisor currently anticipates that the Fund will be able to achieve its investment objective at the Fund's tax quarter-end. Nevertheless, the Trust has revised the "Principal Investment Strategies" section as follows:

The Fund expects to gain [inverse] [leveraged] exposure by investing a portion of its assets in a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands and advised by ProShare Advisors. Because the Fund intends to qualify for treatment as a regulated investment company ("RIC") under

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Subchapter M of the Internal Revenue Code of 1986, as amended, the Fund intends to invest no more than 25% of the Fund's total assets (including any borrowings) in the subsidiary at each quarter end of the Fund's tax year. **<u>As a result, during such periods, the Fund may borrow using reverse repurchase agreements and incur significant borrowing costs, and the Fund's returns may be significantly lower than the Daily Target during such periods at the end of each tax quarter (e.g., July 31, 2025, October 31, 2025, January 30, 2026, April 30, 2026). In addition, the Fund may be required to dispose of a portion of its futures contracts, may not be able to obtain [inverse] [leveraged] exposure consistent with its Daily Target, and may or may not meet its investment objective as of the end of each tax quarter (e.g., July 31, 2025, October 31, 2025, January 30, 2026, April 30, 2026).</u>** Exceeding the 25% limit may have tax consequences, see the section entitled "Tax Risk" in the Fund's Prospectus for more information. References to investments by the Fund should be read to mean investments by either the Fund or the subsidiary.

27.**Comment:** On pages 11-12 the disclosure describes "Additional Solana-Related Investments." The staff is not aware of the existence of any US investment companies that provide investment exposure to solana futures contracts or solana related companies. Please delete discussion of these instruments since they will not be available on the day of effectiveness of the registration statement.

**Response:** The Trust respectfully declines to make a revision to the registration statement regarding the "Additional Solana-Related Investments" disclosure. The Trust notes that subsequent to the Staff's comment, Solana futures contracts began trading on CFTC registered exchanges. Similarly, the Trust notes that subsequent to the Staff's comment, U.S. investment companies that provide exposure to solana futures began trading.

28.**Comment:** Please supplementally explain to us how the Funds would update their disclosures if Solana futures Contracts become available and how the Fund intends to invest in them as a principal investment strategy.

**Response:** The Trust confirms that the registration statement contains disclosures regarding how the Funds will invest in Solana futures as part of each Fund's principal investment strategy.

29.**Comment:** Please supplementally identify the indices the Funds intend to use as their respective performance benchmarks.

**Response:** The Trust notes that the Funds intend to use the Bloomberg Solana Index as their performance benchmarks and the S&P 500 Index as their broad-based performance benchmark.

30.**Comment:** With respect to the ProShares Short Solana ETF, ProShares UltraShort Solana ETF and ProShares Ultra Solana ETF, please include the term "daily" in the Fund name to alert investors to the fact that the Fund may not perform as expected, and may have losses when an investor expected gains, if the Fund is held for a period that is different than one trading day.

**Response:** The Trust respectfully declines to make the requested change. The Advisor does not believe Section 35(d) of the 1940 Act or Rule 35d-1 thereunder require the inclusion of the word "Daily" in the name of the Fund.

31.**Comment:** With respect to the ProShares Short Solana ETF and the ProShares UltraShort Solana ETF, please state in the Important Information About the Fund section that the Fund pursues a daily investment objective that is inverse to the performance of its underlying asset, a result opposite of most mutual funds and exchange-traded funds.

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![](g4v6t4l9krpwx23403bop.jpg)

**Response:** The Trust respectfully declines to include the requested disclosures in the "Important Information About the Fund" section, but notes that such disclosure is included in the "Principal Risks – Short or Inverse Investing Risk" section. For example, for the UltraShort Solana ETF, the following is stated in the "Principal Risks – Short or Inverse Investing Risk" section:

You will lose money when the Index rises – a result that is the opposite from a traditional index fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.**Comment:** With respect to the ProShares Short Solana ETF, ProShares UltraShort Solana ETF, and ProShares Ultra Solana ETF, please include a statement in the Important Information About the Fund section that the Fund is intended to be used as a short-term trading vehicle.

**Response:** The Trust respectfully declines to make the requested change for the reasons discussed in the letter to the Staff dated July 24, 2023. The Advisor continues to believe such disclosures would be inaccurate and may contribute to misinformation about the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.**Comment:** With respect to the ProShares Short Solana ETF, ProShares UltraShort Solana ETF and ProShares Ultra Solana ETF, please state in the Important Information About the Fund section that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Fund is very different from most mutual funds and exchange-traded funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Investors who do not understand the Fund, or who do not intend to actively manage their Funds and monitor their investments, should not buy shares of the Fund.

**Response:** The Trust respectfully declines to include this disclosure in the "Important Information about the Fund" section. The Trust believes the requested disclosures are appropriately reflected elsewhere or, in some instances, false and misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)With respect to disclosure that "the Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios", the Trust respectfully declines to include this disclosure as it is both inaccurate and misleading for the reasons previously discussed with the Staff.

The investment objective of the Funds is to seek daily investment results that correspond to a multiple (or an inverse multiple) of the return of an index for a single day, like other leveraged and inverse funds offered by the Advisor ("Geared Funds"). A fund's investment objective (daily or otherwise) simply describes the investment goal of the Fund. It is not intended to prescribe all the ways an investor can (or should) use a fund, including an investor's decisions about their preferred holding period or preferred monitoring strategy.

The SEC and FINRA have historically recognized that investors may use Geared Funds for longer periods as part of hedging and other strategies[<sup>1</sup>](#div08e8e57f-1bcc-437e-a9f5-c7ee414821a9). This perspective is supported by substantial academic literature that has definitively and repeatedly demonstrated that Geared Funds can usefully be incorporated into longer-term investment strategies, including strategies

1See Updated Investor Bulletin: Leveraged and Inverse ETFs , U.S. Securities and Exchange Commission (2023) ("there may be trading and hedging strategies that justify holding these investments longer than a day"); The Lowdown on Leveraged and Inverse Exchange-Traded Products , FINRA (2022) (geared ETPs "can be held for periods that don't align with the stated objectives" and "there may be trading and hedging strategies that justify holding leveraged and inverse ETPs longer than a day, investors with an intermediate or long-term time horizon should carefully consider whether these products are appropriate for their portfolio."

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that do not require active monitoring and rebalancing[<sup>2</sup>](#div96f5c50d-02a5-4ec3-b43a-e91637c79775). It is also supported by the experience of the many investors who have used these products over the last 25 years[<sup>3</sup>](#div96f5c50d-02a5-4ec3-b43a-e91637c79775)and by the actual performance of Geared Funds over longer time periods[<sup>4</sup>](#div96f5c50d-02a5-4ec3-b43a-e91637c79775).

Notwithstanding the substantial evidence referenced above and previously shared with the Staff, the Advisor has observed recent statements (including the Staff's comment) that conflate the daily investment objective with a limitation on how investors should use Geared Funds.

This is simply not accurate and stating otherwise would be both false and misleading. The Geared Funds are neither "designed" nor "intended" for a specific investor or a specific holding period; nor are they only appropriate when accompanied by a specific and mandated monitoring regime. They are designed to provide investors with daily leveraged or inverse exposure to an index. The Funds' daily investment objective, as discussed herein, describes the Funds' daily target exposure - not the Funds' intended use.

Each Fund's Prospectus encourages investors to monitor their investments in a manner that is consistent with their risk tolerance and investment goals. The principal risk entitled "Holding Period Risk" states in bold:

2See e.g., Donald R. Chambers and Stephen M. Horan, Levered and Inverse Exchange-Traded Products: Evidence from Simulations, Journal of Alternative Investments (2023); Michael Gayed & Charles Bilello, A Systematic Approach to Managing Risk and Magnifying Returns in Stocks, 2016 Charles Dow Award (2016, updated through 2020); Corey Hoffstein, Levered ETFs for the Long Run? Think Newfound (2018); William J. Trainor Jr. et al., A Portfolio of Leveraged Exchange Traded Funds (2018); C. Thomas Howard, et al., Should Leveraged ETFs Be Held for Long Horizons? Advisor Perspectives (2015); Anthony Loviscek, et al., Do Leveraged Exchange-Traded Products Deliver Their Stated Multiples? Journal of Banking & Finance (2014); Jason S. Scott & John G. Watson, The Floor-Leveraged Rule for Retirement, Financial Analysts Journal (2013); Ian Ayres & Barry Nalebuff, Diversification Across Time, Journal of Portfolio Management (2013); William J. Trainor Jr. & Mark G. Carroll, Forecasting Holding Periods for Leveraged ETFs Using Decay Thresholds, Theory and Applications, Journal of Financial Studies & Research (2012); William Trainor, Solving The Leveraged ETF Compounding Problem, Journal of Index Investing (2011); Joanne Hill & Solomon Teller, Rebalancing Leveraged and Inverse Funds, ETFs and Indexing (2009); and George Foster & Joanne Hill, Understanding Returns of Leveraged and Inverse Funds, Journal of Indexes (2009).

4For example, for the 10-year period ended May 31, 2023, the top 3 performing mutual funds/ETFs, 6 of the top 10 performing mutual funds/ETFs and 11 of the top 20 performing mutual funds/ETFs were Geared Funds (based on Morningstar Direct data). These results, of course, would be different over different time periods and market cycles, and for funds with different exposures (e.g., inverse v. long exposure).

Page **10** of **19**

[Y]ou should consider monitoring your investments in the Fund in light of your individual investment goals and risk tolerance.

In addition, the section entitled "Understanding the Risks and Long-Term Performance of a Daily Objective Fund" provides similar disclosure:

Investors should consider actively monitoring and/or periodically rebalancing their portfolios (which will possibly trigger transaction costs and tax consequences) in light of their investment goals and risk tolerance.

The Trust believes these statements adequately and appropriately urges investors to monitor and rebalance their portfolios in a manner that is consistent with their investment goals and risk tolerance without prescribing a mandated method or approach.

(b)With respect to disclosure that the fund is very different from most mutual funds and exchange- traded funds, the Trust notes that the summary section for each Fund that provides leveraged or inverse leveraged exposure includes substantially similar disclosure in the section entitled "Principal Risks – Leverage Risk" as shown below:

**Leverage Risk** — The Fund uses leverage and will lose more money when the value of the Index [falls/rises] than a similar fund that does not use leverage. The use of leverage increases the risk of a total loss of your investment. If the Index approaches a 67% [gain/loss] at any point in the day, you could lose your entire investment. The use of leverage increases the volatility of your returns. The cost of obtaining this leverage will lower your returns.

Similarly, Funds that provide inverse exposure include substantially similar disclosure in the section entitled "Principal Risk – Short or Inverse Investing Risk" as shown below:

**Short or Inverse Investing Risk** — You will lose money when the Index rises – a result that is the opposite from a traditional index fund. Obtaining inverse or "short" exposure may be considered an aggressive investment technique. The costs of obtaining this short exposure will lower your returns. If the level of the Index approaches a 100% increase at any point in the day, you could lose your entire investment. As a result, an investment in the Fund may not be suitable for all investors.

In addition, the section entitled "Investment Objectives, Principal Investment Strategies and Related Risks – Investment Objectives" provides similar disclosure as shown below:

Investment in a Fund involves risks that are different from and additional to the risks of investments in other types of funds.

(c)With respect to disclosure that "investors who do not understand the Investors who do not understand the Fund, or who do not intend to actively manage their Funds and monitor their investments, should not buy shares of the Fund" the Trust believes this formulation is overly technical. The Trust believes that more concise and direct language (e.g., "it is important that you understand") when paired with an explanation of the impact of long-term investing better conveys to investors the risks of investing in the Funds and the importance of understanding the consequences of long-term investing. For example, the excerpt below from the section entitled "Principal Risks – Holding Period Risk" as shown below:

If you are considering holding fund shares for longer than a day, it's important that you understand the impact of Index returns and Index volatility (how much the value of the Index moves up and down from day-to-day) on your holding period....

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The following table illustrates the impact of Index volatility and Index return on Fund returns for a hypothetical one-year period. However, these effects will impact your return for any holding period other than a day. The longer you hold shares of the Fund, the more magnified these effects will be. As a result, you should consider monitoring your investments in the Fund in light of your individual investment goals and risk tolerance....

For more information, including additional graphs and charts demonstrating the effects of Index volatility and Index return on the long-term performance of the Fund, see "Understanding the Risks and Long-Term Performance of a Daily Objective Fund" in the Fund's Prospectus.

With respect to disclosure that "investors who…do not intend to actively manage their Funds and monitor their investments, should not buy shares of the Fund", the Trust believes the requested disclosures are appropriately disclosed as noted above in response to Comment 33(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.**Comment:** Please supplementally confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the financial statements of the Subsidiary will be consolidated with those of the Fund (if not, please explain why not);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Subsidiary and its board of directors will agree to inspection by the staff of the Subsidiary's books and records, which will be maintained in accordance with Section 31 of the Act and the rules thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Subsidiary and its board of directors will designate an agent for service of process in the United States; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Subsidiary's management fee (including any performance fee), if any, will be included in "Management Fees," and the Subsidiary's expenses will be included in "Other Expenses" in the Fund's fee table.

**Response:** The Trust so confirms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.**Comment:** Please describe any disruptions the Solana Network experienced, including any significant instances of network congestion/latency issues or downtimes on the Solana network. Please supplementally describe how such events will impact the valuation of swap transactions and the related impact on the Fund's NAV.

**Response:** The Trust has revised the registration statement, specifically the "Principal Risks – SOL Risk" section in the summary prospectus, to include additional examples of when disruptions in the Solana network have resulted in significant price volatility. As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus.

**<u>Statement of Additional Information:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.**Comment:** Page B-64 describes the "Determination of Net Asset Value". This section does not appear to indicate how the Fund will determine NAV with respect to the Fund's intended investments in SOL swaps. Please update this section to include such policies, including references to how SOL is traded 24/7 and the connection and/or differences to the Funds' determination of NAV daily at 4:00 p.m. daily.

**Response:** As noted above in response to Comment 10, the Trust has removed all references to swap agreements from the summary prospectus. The Funds intend to primarily obtain exposure

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to SOL using Solana futures contracts which will be valued consistent with each Fund's valuation guidelines. The Trust confirms that the referenced disclosures accurately reflect each Fund's valuation guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.**Comment:** Page B-44 discloses Trustee experiences, qualifications, and attributes. It appears that there is no description of experience, qualifications and attributes related to overseeing crypto assets or SOL related portfolios. Please supplementally confirm no such experience exists for such Trustees and supplementally advise the staff if the Fund's selected portfolio managers have any such experience.

**Response:** The Trustees have overseen the launch and ongoing operation of multiple digital asset futures-based ETFs, including ProShares Bitcoin Strategy ETF (BITO), ProShares Short Bitcoin Strategy ETF (BITI), and ProShares Ether Strategy ETF (EETH), among others. In this capacity, the Trustees have gained familiarity with the oversight of funds that invest in digital asset futures and related instruments.

The Trustees have established familiarity with digital assets sufficient to effectively oversee the new SOL related portfolios.

Further, the Portfolio Managers have gained familiarity in this space through extensive research and due diligence, which include reviews of academic and industry research, and discussions with counterparties, index providers, exchanges and industry experts. The Portfolio Managers have significant experience and expertise in managing futures-based funds.

In the context of each Fund's investment strategy and expected trading, the Portfolio Managers have assessed the liquidity and depth of the Solana futures markets primarily through monitoring and analysis of futures volume, open interest, and bid/ask spread as well as each Fund's expected transaction costs and potential capacity constraints.

The Funds will be managed essentially the same as other funds managed by the Advisor for the Trust. The SOL related portfolios will be managed using essentially the same management and oversight process as currently used for other series of the Trust that invest through wholly-owned Cayman subsidiaries (for example, ProShares Bitcoin ETF and ProShares Ether ETF). Funds investing through a Cayman subsidiary require additional monitoring for tax compliance purposes which the Advisor has extensive experience with as a result of managing the other referenced ETFs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.**Comment:** On page B-41, under the Fund's "Investment Objectives and Policies", under Policy No. 7, please revise the policy to only reference those SOL instruments that are available for the Fund to invest in on the date the registration statement becomes effective.

**Response:** The Trust respectfully declines to make a revision to the registration statement regarding the principal and non-principal strategies of the Funds. The Trust notes that subsequent to the Staff's comment Solana futures contracts began trading on CFTC registered exchanges.

**<u>General Comments:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.**Comment:** Please advise us if you expect to submit any exemptive application(s) or no-action request(s) in connection with the registration statement.

**Response:** The Trust confirms that it does not expect to submit any exemptive applications or no-action requests in connection with this registration statement.

**<u>Additional Comments:</u>**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

40.**Comment:** Please supplementally explain whether the Funds will have significant exposure to another issuer either directly or indirectly through derivative instruments. If so, please identify the issuer.

**Response:** The Trust confirms that it does not expect to have significant exposure to another issuer either directly or indirectly through derivatives.

41.**Comment:** Please supplementally discuss how the Funds will be expected to perform during significant daily downturns in the price of Solana futures.

**Response:** The Advisor expects that the Funds will operate consistent with their investment objective during periods of both significant daily downturns and significant daily upturns. As an example, the Advisor expects the Funds would have operated as expected if they had been in operation for the period from April 3, 2025 to April 10, 2025. Over the six business days from April 3, 2025 to April 10, 2025, based on the Bloomberg Solana Index, the daily returns of SOL were - 11.98%, -6.22%, -13.38%, -2.03%, 14.39%, and -6.36%. In total, SOL declined 15.01% over this period. Over the same six-day period, based on daily settlement prices, the daily returns of front- month Solana futures were -12.40%, 6.51%, -13.85%, -1.75%, 14.78%, and -6.42%. In total, front- month Solana futures declined 15.17% over this period. The Advisor expects that the Ultra Solana ETF, investing in front-month Solana futures, would have corresponding daily returns, before fees and expenses, of approximately 24.79%, 13.02%, -27.71%, -3.50%, 29.56%, and -12.84%, based on NAV and would have a return of -33.03% over the six-day period, if operated over this same six-day period. The Advisor expects that the UltraShort Solana ETF, investing in front-month Solana futures would have corresponding daily returns, before fees and expenses, of approximately 24.89%, -13.02%, 27.71%, 3.50%, -29.56%, and 12.84%, based on NAV and would have a return of 14.03%% over the six-day period, if operated over this same six-day period. The Advisor expects that the Short Solana ETF, investing in front-month Solana futures would have corresponding daily returns, before fees and expenses, of approximately 12.40%, -6.51%, 13.85%, 1.75%, -14.78%, and 6.42%, based on NAV and would have a return of 10.40% over the six-day period, if operated over this same six-day period.

42.**Comment:** Would such price changes impact Fund operations, including the creation and redemption process and/or its ability to meet its investment objective.

**Response:** The Advisor does not expect significant price changes to have a significant negative impact on the creation/redemption processes of the Funds. The Funds use essentially the same creation/redemption processes and arbitrage mechanism as other ETFs and the Advisor therefore does not expect volatility to have a significant negative impact on such processes.

While there was significant volatility in SOL and Solana futures contracts from April 3, 2025 to April 10, 2025, trading continued throughout the day each with significant volume and a closing price was reported each day. Specifically, the total notional volume for front-month Solana futures over the period was $102 million. The notional open interest for front-month Solana futures averaged $24 million. This indicates that there was significant interest in both sides of the trade from both buyers and sellers. Additionally, the correlation between the price returns of front-month Solana futures contracts and spot SOL during the period (0.9999) was similar to the full sample correlation (0.9989, March 17, 2025 to June 30, 2025), notwithstanding the volatility in the market during the period.

In light of this liquidity, the Advisor believes the Funds would have been able to obtain the desired futures exposure and exit its positions, if necessary. Additionally, closing prices for Solana futures were reported each of the referenced days, which would have allowed the Funds to calculate end- of-day NAVs. In light of the above, the Advisor believes the market events during these periods would not have had an impact on the liquidity profile of the Funds, the ability of the Funds to obtain appropriate investment exposure or to meet redemption requests, the ability of the Funds to calculate NAV or otherwise had a material adverse impact on the operations of the Funds.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![](gv5o8pjw8bht875tvhk8n.jpg)

43.**Comment:** Please supplementally discuss whether the Funds anticipate any capacity constraints in the futures market that would limit the size of the Fund's exposure to futures and explain how the Fund intends to monitor market capacity as new participants enter the market.

**Response:** The Advisor does not expect that the current levels of existing Solana futures would create capacity constraints for the Funds or otherwise limit the Funds' ability (or the ability of similar products) to obtain the desired exposure to futures contracts, or that the Funds' futures transactions (and transactions by similar products) are likely to have a material impact on the price of such contracts.

The market for Solana futures contracts, as measured by current volume and open interest, has increased significantly since such contracts began trading. For example, from March 17, 2025 to June 30, 2025, the average daily notional volume in the front-month Solana futures contracts averaged $39 million and notional open interest averaged $57 million.

The Advisor believes the current level of futures volumes and open interest for Solana futures indicate a market of sufficient size and liquidity and will not create capacity constraints or exposure limits for, or limit the ability of, the Funds (or similar products) to obtain the desired exposure. For the same reasons, the Advisor does not believe the Funds' futures transactions (and transactions by similar products) are likely to have a material impact on the price of such contracts. Importantly, unlike the supply of equity securities (which typically is fixed by the number of shares issued) additional futures contracts may be created whenever there is sufficient interest in such contracts. The Advisor expects the current number of registrants looking to launch similar funds is likely to have a corresponding positive impact on the Solana futures market. To the extent there is demand for the shares of such funds, the purchase of fund shares should increase both open interest and contract volume.

The charts below illustrate this point. The first chart shows the growth in volume and open interest of Solana futures contracts and that, in general, open interest has moved with contract volume. The second chart provides a similar comparison based on notional value.

2500

2000

1500

1000

500

**CONTRACT VOLUME & OPEN INTEREST: CME SOL Futures**

Daily, Mar. 17, 2025 - Jun. 30, 2025

![](gcmi0jpqxo4p0bkujk5w2.jpg)![](gl1akxxz2ajiqvcs8mopz.jpg) Volume

![](gsyj7rtwmaaabn52bcy2l.jpg)![](gpnn4lz4zsmwwgx9mh2t4.jpg) Open Interest

0 <br> Mar-25 Apr-25 May-25 Jun-25

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![](g0cr0972q9gvol395aems.jpg)

Millions

**NOTIONAL VOLUME & OPEN INTEREST: CME SOL Futures**

Daily, Mar. 17, 2025 - Jun. 30, 2025

![](goxundduqvfta4xldvnvd.jpg)![](gweqbq8adn4c3f0g3h4mv.jpg) Volume

<sup>140</sup> ![](gccuunljoiw9ni8v97jx5.jpg)![](g3h3r3qu4ghvr000kkvn5.jpg) Open Interest

0 <br> Mar-25 Apr-25 May-25 Jun-25

The chart below shows the price of the front-month Solana futures contract and the price of spot SOL (as measured by the Bloomberg Solana Index). The chart shows the correlation between the returns of the respective contracts and SOL over the maximum data history available. As the chart illustrates, the significant increases in contract volume illustrated above have not resulted in significant deviations between the price of the front- month futures contracts and the spot prices, which were highly correlated during the measurement period.

**ROLLING 21-DAY CORRELATION: SOL Futures vs. SOL**

Daily, Apr. 14, 2025 - Jun. 30, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.0000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.9975 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.9950 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.9925 Rolling 21-Day

Full Sample (0.9989)

0.9900 <br> Apr-25 May-25 Jun-25

The lack of a material impact on price is further supported by an analysis of the bid-ask spreads on front-month Solana futures contracts. If demand had a material impact on price, we would expect to see widening bid-ask spreads as demand increases. Instead, as illustrated below, spreads clustered around the mean throughout the period.

Page **16** of **19**

![](gomvqvpk646wx6hsv83qw.jpg)

**AVERAGE BID-ASK SPREAD: SOL Futures**

Daily, Mar. 17, 2025 - Jun. 30, 2025

0.35%

---

| | | | |
|:---|:---|:---|:---|
| 0.30% |  |  | Daily |
| 0.30% |  |  | Full-Sample (0.14%) |
|  |  |  | Full-Sample (0.14%) |
| 0.25% |  |  |  |
| 0.20% |  |  |  |
| 0.15% |  |  |  |
| 0.10% |  |  |  |
| 0.05% |  |  |  |
| 0.00% |  |  |  |
| Mar-25 | Apr-25 | May-25 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jun-25 |

---

The Advisor does not believe the number of registrants looking to launch similar funds is likely to have a negative impact on the Solana futures market. As the assets of the Funds and similar products grow, the Funds and such products will need to enter into additional Solana futures contracts to achieve their desired exposures. As illustrated by the data provided above, the Advisor expects the market will meet this demand with a corresponding increase in open interest and trading volumes without a detrimental impact on the prices of such contracts.

The Advisor monitors market capacity and liquidity, as well as counterparty exposure and capacity, on a daily basis.

Finally, the Advisor does not currently anticipate that the position limits or accountability levels imposed by the futures exchange or position limits imposed by FCM will have any material negative impact on the ability of the Fund to achieve its investment objective or meet redemption requests. The current front-month Solana futures position limit is 5,000 contracts with an additional accountability level of 10,000 contracts, which equates to approximately $1.19 billion of exposure based on current contract values.

44.**Comment:** Please supplementally explain and disclose the impact of high margin associated with Solana futures contracts on the Funds' ability to obtain exposure, including leveraged, leverage-inverse or inverse exposure, as applicable.

**Response:** The Advisor does not expect the current margin requirements associated with Solana futures contracts to impact the Funds' ability to achieve their Daily Target, except at the end of each Fund's tax quarter.

45.**Comment:** Please supplementally confirm whether the Funds have lined up FCMs and identify who those FCMs are:

**Response:** The Trust confirms that the Funds, through their subsidiaries, have multiple available FCMs, the names of which will be provided under separate cover.

46.**Comment:** Please supplementally explain how the Fund anticipates classifying the liquidity of Solana futures and the rationale for such classification.

**Response:** The front-month, cash-settled Solana futures contracts in which the Funds invest are expected to be classified as "highly liquid." Under current market conditions and at the level at which the Funds are expected to invest, the Funds expect that positions in significant size would

Page **17** of **19**

be convertible to cash in three business days or less without the conversion to cash significantly changing the market value of such contracts.

47.**Comment:** Please disclose the impact of exceeding certain thresholds, such as FCM-imposed capacity limits or the CME's position limits for a given contract, and whether these circumstances (or others) may cause a Fund to reduce their exposure, including leveraged, leveraged-inverse or inverse exposure, as applicable. Please address what actions the Advisor may take in such circumstances and the impact of any disruption on the Fund's ability to obtain appropriate exposure.

**Response:** The Trust confirms the requested disclosures are included in the summary section of the Prospectus for each Fund in the principal investment risk entitled "Solana Futures Capacity Risk" which states:

**Solana Futures Capacity Risk –** If the Fund's ability to obtain exposure to Solana futures contracts consistent with its investment objective is disrupted for any reason including, for example, limited liquidity in the Solana futures market, a disruption to the Solana futures market, or as a result of margin requirements, position limits, accountability levels, or other limitations imposed by the Fund's futures commission merchants ("FCMs"), the listing exchanges or the CFTC, the Fund may not be able to achieve its investment objective and may experience significant losses.

In such circumstances, the Advisor intends to take such action as it believes appropriate and in the best interest of the Fund. Any disruption in the Fund's ability to obtain inverse exposure to Solana futures contracts will cause the Fund's performance to deviate from the performance of SOL and Solana futures. Additionally, the ability of the Fund to obtain [leverage] [inverse] exposure to Solana futures contracts is limited by certain tax rules that limit the amount the Fund can invest in its wholly-owned subsidiary as of the end of each tax quarter. Exceeding this amount may have tax consequences, see the section entitled "Tax Risk" in the Fund's Prospectus for more information.

In addition, the Trust confirms the Item 9 disclosures for ProShares Short Solana ETF, ProShares Ultra Solana ETF, and ProShares UltraShort Solana ETF will include the following:

Additional SOL-Related Investments

If a Fund is unable to obtain the desired exposure to SOL through futures contracts because it is approaching or has exceeded position limits or accountability levels or because of liquidity or other constraints, ProShare Advisors LLC intends to take such action as it believes appropriate and in the best interest of the Fund. This may include, among other things, investing in equity securities of "SOL-related companies" or investing in other U.S. investment companies that provide investment exposure to Solana futures contracts or SOL-related companies. For these purposes, SOL-related companies are companies listed on a U.S. stock exchange that ProShare Advisors LLC believes provide returns that generally correspond, or are closely related, to the performance of SOL or Solana futures. For example, a Fund may invest in U.S. listed companies engaged in digital asset mining or offering digital asset trading platforms.

In addition, with respect to ProShares Ultra Solana ETF, the Fund may also invest in U.S. listed ETFs that provide exposure to Solana futures. Each Fund may enter into swap agreements that provide exposure to SOL or Solana futures. In the future, the Funds may seek to obtain the desired exposure to SOL by investing in U.S. listed ETFs that hold SOL or by entering into swap agreements that use such

Page **18** of **19**

ETFs as a reference asset. U.S. listed ETFs that hold SOL are not expected to be regulated under the Investment Company Act of 1940 and their sponsors may not be registered under the Investment Advisers Act of 1940. Therefore, a Fund's investments in these vehicles will not benefit from the protections and restrictions of those laws. As of the date of this Prospectus, there are no U.S. listed ETFs that hold SOL.

Similarly, the Trust confirms the Item 9 disclosures for ProShares Solana ETF will include the following:

Additional SOL-Related Investments

If the Fund is unable to obtain the desired exposure to SOL through futures contracts because it is approaching or has exceeded position limits or accountability levels or because of liquidity or other constraints, ProShare Advisors LLC intends to take such action as it believes appropriate and in the best interest of the Fund. This may include among other things, investing in equity securities of "SOL-related companies" or investing in other U.S. investment companies that provide investment exposure to Solana futures contracts or SOL-related companies. For these purposes, SOL-related companies are companies listed on a U.S. stock exchange that ProShare Advisors LLC believes provide returns that generally correspond, or are closely related, to the performance of SOL or Solana futures. For example, the Fund may invest in U.S. listed companies engaged in digital asset mining or offering digital asset trading platforms.

In addition, the Fund may also invest in U.S. listed ETFs that provide exposure to Solana futures. The Fund may enter into swap agreements that provide exposure to SOL or Solana futures. In the future, the Fund may seek to obtain the desired exposure to SOL by investing in U.S. listed ETFs that hold SOL or by entering into swap agreements that use such ETFs as a reference asset. U.S. listed ETFs that hold SOL are not expected to be regulated under the Investment Company Act of 1940 and their sponsors may not be registered under the Investment Advisers Act of 1940. Therefore, the Fund's investments in these vehicles will not benefit from the protections and restrictions of those laws. As of the date of this Prospectus, there are no U.S. listed ETFs that hold SOL.

\* \* \* \* \*

We hope that these responses adequately address your comments. If you or any other Commission Staff member should have any further comments or questions regarding this filing, please contact me at (240) 497-6400.

Very truly yours,

/s/ Kristen Freeman

Kristen Freeman

ProShares Advisors LLC

Senior Director, Counsel

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