ProShares Goes Short On Ethereum With New ETF Launch
Pro Sharesone of the largest issuers of exchange-traded funds (ETFs), has added another ETF linked to Ethereum to its growing offering following the launch of the “world’s first ether-linked short ETF” on November 2.
ProShares Short Ethereum Strategy ETF
In his announcementThe asset manager mentioned that trading the ProShares Short Ether Strategy ETF under the symbol “SETH” will provide investors with a way to profit from the falling price of the second largest cryptocurrency, Ether.
With the launch From this Ethereum investment vehicle, the company believes that its clients have the opportunity to “take advantage of both the days when Ether rises and those when it falls”. It is worth mentioning that the asset manager was among those who recently launched its Ethereum futures ETFoffering investors the opportunity to bet on the prices of the crypto token.
The asset manager mentioned that the Short Ether Strategy ETF will be listed on the New York Stock Exchange and will offer the opposite of the daily performance of the S&P CME Ether Futures Index. When it comes to exposure, SETH, like other ProShares crypto-related ETFs, will gain exposure through Ether Futures.
ETH price falls below $1,800 | Source: ETHUSD on Tradingview.com
How ProShares has led the way so far
ProShares is not a newcomer when it comes to offering crypto-related ETFs and can even be considered a pioneer in this regard. The company was first to launch a Bitcoin futures ETF and the first US Bitcoin-related ETF (ProShares Bitcoin Strategy ETF) in 2021.
He also launched the first short American ETF linked to Bitcoin (ProShares Short Bitcoin Strategy ETF) in June 2022. Similar to SETH, the Short Bitcoin strategy offers investors a way to make profits. price drops of the flagship cryptocurrency, Bitcoin.
ProShares has also seen immense success in its projects, largely due to the first-mover advantage of being the first to launch funds. The ProShares Bitcoin Strategy ETF (BITO) and the ProShares Short Bitcoin Strategy ETF (BITI) are reported being the two largest Bitcoin ETFs with $1.1 billion and $80 million in assets under management (AuM) respectively.
Other crypto-related ETFs offered by the company include the ProShares Ether Strategy ETF (EETH), which is billed as “the first U.S. ETF that targets the performance of Ether,” and the Bitcoin & Ether ETF Market Cap Weight Strategy and Bitcoin & Ether. Equal-weighted strategy ETF that tracks both the performance of Bitcoin and Ether.
Given the company’s optimism about crypto-related ETFs, it is surprising that it is not among the asset managers who have filed to offer a Spot Bitcoin ETF.
Featured image from iStock, chart from Tradingview.com
