ProShares is gearing up for the imminent launch of a groundbreaking financial instrument—the Short Ether Strategy ETF (SETH). This move comes on the heels of regulatory approval for the inaugural Ethereum futures ETFs.
ProShares has been on a roll, unveiling a series of Ether futures exchange-traded funds (ETFs) in recent weeks. The latest addition to their portfolio, SETH, is poised to commence trading in November.
Trading on NYSE Arca Exchange
Scheduled for listing on the NYSE Arca exchange, SETH aims to replicate daily investment outcomes inversely correlated to the S&P CME Ether Futures Index performance. The filing made on Friday, Oct. 13, outlines the ETF’s strategy, emphasizing its focus on achieving results mirroring the inverse of daily index performance.
Unlike direct shorting of Ether, the fund employs a strategy to capitalize on price downturns. As of Friday, ETH was valued at approximately $1,540, reflecting a 6% decrease over the preceding week. ProShares anticipates that the ETF’s registration statement will become effective on Oct. 15, with plans to launch the fund in early November, according to insights from Blockworks.
Expansion of ProShares’ Ether Futures Portfolio
While SETH is gearing up for its debut, ProShares already made waves with three existing Ether futures funds. These include two funds that invest in both Ether and Bitcoin futures contracts. Launched on Oct. 2 alongside similar products from VanEck and Bitwise, these funds represent ProShares’ strategic expansion in the dynamic cryptocurrency market.
SEC Approval and Market Trends
It’s noteworthy that the U.S. Securities and Exchange Commission’s approval of Ether futures ETFs occurred almost two years after the introduction of the initial Bitcoin futures ETF. ProShares made a significant mark in the industry with the ProShares Bitcoin Strategy ETF in October 2021. Building on this success, they released the Short Bitcoin Strategy ETF in June 2022.
Presently, the ProShares Bitcoin Strategy ETF boasts around $850 million in assets, while the Short Bitcoin Strategy ETF has accumulated approximately $75 million.