In an effort to take advantage of Ether price volatility, ProShares launched the Short Ether Strategy ETF (NYSE: SETH) on Thursday. This ETF, which trades on NYSE’s Arca, is designed to streamline the ETH short-selling process and make it possible to take advantage of Ether’s price momentum through traditional brokerage accounts, according to CEO Michael Sapir .
SETH is unique in its approach to gaining exposure through Ether futures, a strategy consistently used across ProShares’ crypto ETF lineup. Sapir highlighted that SETH simplifies acquiring short exposure to ether and allows investors to profit from both rises and falls in the price of ether. However, he also cautioned investors about the unique risks associated with these investments due to their volatility and unpredictability.
The ETF mirrors the inverse of the daily performance of the S&P CME Ether Futures Index, with the aim of benefiting from fluctuations in the price of Ether. The strategy is similar to other crypto ETFs from ProShares such as BITO, EETH, BETH and BETE.
However, Sapir also highlighted additional challenges faced by ETFs actively managed by ProShares. These include the use of futures contracts, imperfect benchmark correlation, leverage, and market price variance. These factors can amplify volatility and negatively influence performance. Notably, SETH is expected to incur losses when the daily price of ether futures rises.
Despite the launch of SETH, interest in ether futures ETFs remains relatively muted. The combined assets under management (AUM) of six recently launched ETH-based futures ETFs hover around $20 million.
SETH joins ProShares’ crypto ETF lineup, which includes BITO and BITI (launched when they fell below $20,000), EETH, BETH, and BETE.
This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.