ProShares Prepares to Launch Unique Ethereum ETF Short Ether Strategy

ETF provider ProShares is poised to further expand its crypto offerings with an inverse EtTH futures fund.
Ethereum (ETH) Futures premium has risen to over its one year high

ProShares, a provider of ETFs, is getting ready to add an inverse Ethereum futures fund to its cryptocurrency products. The ProShares Short Ether Strategy ETF (SETH), which is in the works, seeks exposure to anticipated drops in the price of Ethereum.

Just a few weeks after launching three long-only Ether Futures ETFs in early October, ProShares details about the new fund on Friday. SETH would be listed on NYSE Arca and track the daily inverse performance of the S&P CME Ether Futures Index.

The fund would provide investors the chance to profit from falls in Ethereum without actually shorting the asset. ProShares claims that they anticipate the registration statement being approved by the SEC on October 15th, with an intended launch date of early November.

SETH would join the provider’s Short Bitcoin Strategy fund, which was established in June 2022 and is a Bitcoin inverse futures ETF. It has so far attracted assets worth about $75 million. With $850 million in assets under management, ProShares’ long-term Bitcoin futures ETF (BITO) continues to be the largest.

The upcoming launch of an inverse Ether derivative comes as Ethereum trades around $1,500, down 6% over the past week. On hope that the SEC would approve futures-based ETFs, the cryptocurrency had increased earlier in October.

ProShares and Bitwise submitted an application for exchange-traded funds with a concentration on bitcoin and ether to the SEC on August 4. Following the SEC’s approval on October 2nd, ProShares acted fast along with VanEck and Bitwise to launch the first three Ether funds.

Because of the ease of use of the ETF structure, the products make crypto exposure accessible to a wider investment base. But the introduction of an inverse fund also makes it possible to profit from future volatility drops or pessimistic mood. ProShares has established itself as a pioneer in developing a variety of cryptocurrency investment vehicles for varying market situations.

After the historic first Bitcoin fund, it took the SEC more than two years to approve Ether Futures ETFs. In light of the volatility in the cryptocurrency market, it is still unclear how quickly the assets will increase. However, customized options continue to increase access for investors with various levels of risk appetite.

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