ProShares has recently introduced a series of Ether (ETH) futures exchange-traded funds (ETFs), with the latest offering, the ProShares Short Ether Strategy ETF (SETH), set to start trading in November. This ETF is scheduled for listing on the NYSE Arca exchange and aims to achieve daily investment outcomes that mirror the inverse of the daily S&P CME Ether Futures Index performance, according to a filing made on October 13th.
Unlike traditional shorting, the ProShares Short Ether Strategy ETF does not engage in direct shorting of Ether. Instead, it seeks to capitalize on price dips. As of Friday, the price of ETH was around $1,540, showing a decrease of approximately 6% over the past week.
ProShares expects the registration statement for the ETF to become effective on October 15th, with plans to introduce the fund in early November, as reported by Blockworks. However, it’s worth noting that three existing ProShares Ether futures funds were introduced on October 2nd, along with similar products from VanEck and Bitwise. This approval by the U.S. Securities and Exchange Commission (SEC) comes almost two years after the launch of the first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF, which entered the market in October 2021.
ProShares has continued to release Bitcoin futures ETFs, including the Short Bitcoin Strategy ETF in June 2022. Currently, the ProShares Bitcoin Strategy ETF has accumulated around $850 million in assets, while the Short Bitcoin Strategy ETF has approximately $75 million.
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The introduction of the ProShares Short Ether Strategy ETF provides investors with another option for gaining exposure to the price movements of Ether. This ETF will allow investors to take a short position on Ether without the need to directly engage in short selling. By mirroring the inverse performance of the S&P CME Ether Futures Index, the ProShares Short Ether Strategy ETF offers investors a way to profit from price decreases in Ether.
The increasing availability of Ether futures ETFs reflects the growing popularity and acceptance of cryptocurrencies by traditional financial institutions. These ETFs provide institutional and retail investors with a regulated and easily accessible way to invest in cryptocurrencies. As more investment options become available, it is expected that the cryptocurrency market will continue to attract a broader range of investors.
While the ProShares Short Ether Strategy ETF is set to launch in November, ProShares and other companies continue to develop and introduce new ETFs to meet the growing demand for cryptocurrency investment products. These ETFs provide investors with new opportunities and strategies to capitalize on the volatility of the cryptocurrency market.
Overall, the introduction of the ProShares Short Ether Strategy ETF is a significant development in the cryptocurrency market. It offers investors a way to profit from price decreases in Ether without the need for direct short selling. As the popularity of cryptocurrencies continues to grow, the availability of regulated investment products, such as ETFs, will play a crucial role in attracting more traditional investors to the market. The introduction of Ether futures ETFs demonstrates the increasing acceptance and integration of cryptocurrencies into the global financial system.
