By George Ward
Unveiling The Short Ether ETF
In response to the growing demand for exposure to digital assets from its institutional clients, ProShares, a leading ETF provider, recently unveiled three Ethereum (ETH) futures exchange-traded funds (ETFs) products. More importantly, the ProShares Short Ether Strategy ETF (SETH) is set to be available on the marketplace beginning in November.
The SETH is one of the three newly launched ETFs by ProShares. SETH will also debut on the NYSE Arca exchange, according to a filing submitted on October 13.
SETH, unlike traditional shorting strategies, does not directly short Ether. Instead, it seeks to profit from ETH’s price decline, making it a novel approach to managing investment risk in the volatile crypto market.
On Friday, October 13, the price of ETH traded at almost $1,540, representing a 6% drop over the past week. This price movement highlights the potential value that SETH may offer to investors looking for ways to explore and profit from short-term Ether market fluctuations.
ProShares’ introduction of SETH marks a significant development in the ETF space as it provides investors with an additional investment option to gain exposure to Ether. It also reflects the growing recognition of cryptocurrencies as asset classes by institutional investors.
Gearing Up For A November Launch
Once ProShares sorts out its effective date of registration statement by October 15, it plans to introduce the Short Ether Strategy ETF to the market by early November. This new offering follows the successful October 2 launch of three ProShares Ether futures funds.
These funds, which include investment options in ETH and BTC futures contracts, have already made a substantial market impact. The latest announcement coincides with the public launch of similar products by two leading asset managers, VanEck and Bitwise, highlighting investors’ growing interest in crypto-backed investment vehicles.
SEC’s Approval Of Ether Futures ETF
The Securities and Exchange Commission (SEC) ‘s approval of Ether futures ETFs comes nearly two years after it approved the first Bitcoin futures ETF. One of those approved by the US regulator was the ProShares Bitcoin Strategy ETF, which debuted in October 2021 and marked the beginning of a new era of cryptocurrency-based investment products.
Hence, ProShares has become a prominent ETF provider, launching these innovative crypto-backed investment products tied to virtual currencies. Following the success of the Bitcoin Strategy ETF, the company expanded its offerings in June 2022 by introducing the Short Bitcoin Strategy ETF.
Thus far, the ProShares Bitcoin Strategy ETF currently has $850 million in assets under management, while the Short Bitcoin Strategy ETF has nearly $75 million. The US regulator’s approval of Ether futures ETFs is a defining moment in the cryptocurrency market.
It indicates that digital assets are becoming more recognized and adopted as legitimate investment options within the traditional financial ecosystem. The launch of these ETFs will provide investors with easy and regulated access to the world’s second-largest crypto asset by market capitalization.
Analysts predict that these ETH ETF products will further accelerate Ether’s adoption and integration into mainstream investment portfolios. On the other hand, the success of ProShares’ Bitcoin ETFs shows investor interest in novel approaches to digital asset investment.
As the crypto market evolves, investors’ demand for diverse investment options is expected to rise, potentially leading to additional crypto-backed ETF products.