ProShares, a prominent financial entity headquartered in Bethesda, demonstrates its pioneering expertise in cryptocurrency-linked ETFs. They have launched the world’s first short ether-linked ETF, known as the ProShares Short Ether Strategy ETF (SETH), as reported by BusinessWire.
Furthermore, this innovative ETF is designed to provide investors with a lucrative opportunity during periods of declining Ether valuation. Moreover, the announcement, made on November 2, 2023, solidifies ProShares’ position as a pioneer in cryptocurrency-linked ETFs. SETH simplifies the previously complex and expensive process of gaining short exposure to Ether.
Michael L. Sapir, ProShares’ CEO, emphasized that SETH is a beacon for investors. It enables them to profit from Ether’s price fluctuations and downtrends through a traditional brokerage account.
ProShares’ Short Ether-Linked ETF Portfolio Expansion
The newly introduced ETF not only broadens ProShares’ range of crypto-focused products but also addresses the market’s need for straightforward Ether short exposure. This marks ProShares’ second foray into the cryptocurrency sector.
Previously, the firm took a significant step by introducing the first U.S. Bitcoin-linked ETF, BITO, in 2021. This ETF quickly became the world’s largest and most recognized cryptocurrency-linked ETF.
Building on the success of BITO, ProShares introduced BITI, the first U.S. short Bitcoin-linked ETF, and EETH, which is designed to track Ether’s performance. Additionally, they also launched two blended ETFs, BETH and BETE, covering both Bitcoin and Ether performance.
The introduction of SETH is a notable addition to the extensive range of cryptocurrency-linked ETFs, highlighting ProShares’ steadfast commitment to meeting the changing preferences of cryptocurrency investors.
SETH: ProShares’ Innovative Approach to Ether Futures Trading
SETH is now officially listed on the New York Stock Exchange. It is designed to provide the inverse of the daily performance of the S&P CME Ether Futures Index.
In line with other members of the ProShares cryptocurrency-linked ETF family, SETH aims to gain exposure through Ether futures contracts.
This approach underscores ProShares’ strategy of utilizing futures contracts to offer investors a structured way to participate in the cryptocurrency market. Moreover, this strategy helps mitigate some of the challenges linked to direct investments in cryptocurrencies.
Dating back to 2006, ProShares has been a trailblazer in the ETF revolution. The firm, in collaboration with its affiliates, oversees a portfolio exceeding $60 billion. They offer a wide range of ETF strategies, including cryptocurrency-linked options, dividend growth, and leveraged (geared) and inverse ETF investment opportunities.
ProShares continues its tradition of pioneering innovation with the introduction of SETH. Furthermore, this ETF helps investors manage risk and boost yields in a volatile market.
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