ProShares, a leading exchange-traded fund (ETF) provider, has recently introduced a trio of Ether (ETH) futures ETFs to its growing portfolio. The latest addition, the ProShares Short Ether Strategy ETF (SETH), is set to commence trading in November, making waves in the world of cryptocurrency and investment.
Scheduled for listing on the NYSE Arca exchange, the ProShares Short Ether Strategy ETF (SETH) has been designed to deliver daily investment results that inversely correlate with the performance of the daily S&P CME Ether Futures Index, as detailed in a filing made on Friday, October 13.
Unlike traditional shorting strategies, the SETH ETF does not engage in direct shorting of the Ether cryptocurrency. Instead, it aims to capitalize on price downturns in the Ethereum market, providing a unique and innovative way for investors to hedge their positions and capitalize on market volatility without the complexities and risks of short-selling.
As of the most recent data available, the price of Ether (ETH) was hovering around $1,540, representing a decline of approximately 6% over the past week. ProShares intends to harness these market dynamics to offer a valuable investment tool for traders who wish to profit from downturns in the Ethereum market.
The registration statement for the ProShares Short Ether Strategy ETF (SETH) is expected to become effective on October 15, 2023. Following this milestone, ProShares aims to introduce the ETF to the market in early November, making it the latest addition to their cryptocurrency-based ETF offerings.
ProShares’ foray into cryptocurrency ETFs is not new. In June 2022, the company introduced the Short Bitcoin Strategy ETF, followed by the ProShares Bitcoin Strategy ETF. To date, the ProShares Bitcoin Strategy ETF has garnered approximately $850 million in assets, while the Short Bitcoin Strategy ETF has accumulated around $75 million. These numbers highlight the growing interest among investors for cryptocurrency-based ETFs as a way to gain exposure to digital assets through traditional investment channels.
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