ProShares has taken a groundbreaking step in the world of cryptocurrency investment by introducing the first-ever Ethereum inverse ETF. Known as the ProShares Short Ether Strategy ETF, and traded under the ticker symbol SETH, this innovative ETF aims to generate returns inversely correlated to the daily performance of its underlying index, the Standard & Poor’s CME Ether Futures Index. What sets SETH apart from other ETFs is its focus on the inverse movement of Ethereum’s price. In simpler terms, this means that as the price of Ethereum decreases, the value of the ETF increases, making it an attractive option for investors with a bearish outlook on Ethereum’s future.
This introduction comes at a time when traditional spot ETFs are still awaiting approval from the US Securities and Exchange Commission. SETH offers investors a unique opportunity to engage with the volatile crypto market without the complexities of directly shorting the asset. Listed on the New York Stock Exchange, SETH marks ProShares’ pioneering venture into the world of inverse ETFs.
The launch of Ethereum ETFs began in early October, with ProShares unveiling three out of a total of nine new products. However, the initial response was lukewarm compared to the enthusiastic reception received by their Bitcoin Strategy ETF in the past. Michael Sapir, the CEO of ProShares, emphasized SETH as a solution to the challenges associated with obtaining short positions in Ether, which often involve cumbersome and costly processes. Sapir stated that SETH was specifically designed to simplify the process of acquiring short exposure to Ether, making it more accessible for investors.
ProShares Forefront In Diverse ETFs Launch
ProShares, a prominent player in the crypto-linked ETF market, has been leading the ETF revolution since 2006. The company boasts one of the most extensive ETF lineups and manages over $60 billion in assets, along with its affiliates. This recent development follows ProShares’ previous successes in the cryptocurrency market.
In June, the company introduced its first short bitcoin-linked ETF in the United States, trading under the ticker BITI. Moreover, in October 2021, ProShares made history by launching BITO, the first US bitcoin-linked ETF, amassing over $1 billion in assets within just two days of its release. Additionally, the ETF issuer pioneered the creation of the first BTC-linked mutual fund, BTCFX, in July 2021, further solidifying its position as an innovative leader in the cryptocurrency investment landscape.