ProShares has introduced the inaugural exchange-traded fund (ETF) designed for investors seeking a bearish stance on Ether, the second-largest cryptocurrency globally. The ProShares Short Ether Strategy ETF (SETH) is structured to reflect the opposite performance of the Standard & Poor’s CME Ether Futures Index. Consequently, if the index drops by 1%, the ETF aims to generate a 1% return.
Similar to other cryptocurrency ETFs, this new product is tied to futures contracts linked to Ether, not the token’s spot price. As of now, the cryptocurrency market anticipates the U.S. Securities and Exchange Commission’s approval for spot bitcoin ETFs.
In early October, the initial batch of Ether ETFs emerged, with ProShares unveiling three among nine new vehicles. While the ProShares Bitcoin Strategy ETF drew in approximately $1 billion in assets within its initial trading days, the debut of the Ether ETFs was considered underwhelming. Even the largest Ether futures ETF of the new group has amassed below $10 million in assets.
Michael Sapir, CEO of ProShares, highlighted that the newly launched inverse Ether ETF was specifically crafted to alleviate the complexities and expenses associated with obtaining short exposure to Ether.