ProShares Unveils World’s First Short Ether-Linked ETF

Bethesda-based financial giant, ProShares, has once again taken a pioneering step in the crypto-linked ETF domain with the launch of the world’s first short ether-linked ETF, named ProShares Short Ether Strategy ETF (SETH), according to BusinessWire. This innovative ETF is engineered to give investors a lucrative avenue on days when Ether’s value descends. The announcement came on November 2, 2023, further solidifying ProShares’ standing as a trailblazer in the crypto-linked ETF landscape.

SETH is meticulously crafted to simplify the once arduous and costly task of acquiring short exposure to ether. ProShares CEO, Michael L. Sapir, elucidated that SETH is a beacon for investors aiming to gain on both the ups and downs of ether pricing, all within the familiar framework of a conventional brokerage account. This newly launched ETF not only broadens ProShares’ crypto-focused offerings but also addresses a market demand for straightforward short exposure to ether.

This is not ProShares’ first foray into the crypto realm. The firm had previously set the stage by launching the first U.S. bitcoin-linked ETF, BITO, in 2021, which quickly climbed the ranks to become the largest crypto-linked ETF globally. Following BITO, ProShares introduced BITI, the first U.S. short bitcoin-linked ETF, EETH, targeting ether’s performance, and two blended bitcoin and ether performance-oriented ETFs, BETH and BETE. The advent of SETH is a significant addition to this already robust lineup of crypto-linked ETFs, demonstrating ProShares’ commitment to catering to the evolving investor preferences in the cryptocurrency space.

SETH is listed on the New York Stock Exchange and is structured to deliver the inverse of the daily performance of the S&P CME Ether Futures Index. Similar to its siblings in the ProShares crypto-linked ETF family, SETH aims to achieve exposure through ether futures contracts. This characteristic underscores ProShares’ strategy of leveraging futures contracts to provide investors a structured pathway to engage with the cryptocurrency market, mitigating some challenges associated with direct cryptocurrency investments.

With roots dating back to 2006, ProShares has been a vanguard in the ETF revolution. The firm, along with its affiliates, oversees over $60 billion in assets, offering a vast array of ETF strategies, including crypto-linked, dividend growth, and geared (leveraged and inverse) ETF investing. ProShares’ tradition of innovation continues with the launch of SETH, providing investors with tactical opportunities to manage risk and enhance returns in a market known for its volatility.

Image source: Shutterstock


Tagged : / / / / / / / /

ProShares to Launch First Ether ETF and Blended Crypto Funds

Bethesda, Maryland-based ProShares, a prominent player in the crypto-linked ETF market, has announced a significant expansion of its product line. On October 2, 2023, the firm will launch three new exchange-traded funds (ETFs), including the ProShares Ether Strategy ETF (EETH). This will be the first ETF specifically designed to track the performance of ether, the second-largest cryptocurrency by market capitalization. In addition to EETH, ProShares is introducing two blended ETFs that aim to offer investors exposure to both bitcoin and ether, the dominant cryptocurrencies in the market.

ProShares has been a pioneer in the ETF industry since its inception in 2006. With over $60 billion in managed assets, the firm has been a leader in various investment strategies, including crypto, dividend growth, and geared (leveraged and inverse) ETFs.

The launch of these ETFs is a significant milestone in the maturation of the cryptocurrency market. It follows ProShares’ earlier successes, including the launch of BITO in 2021 and BITI, the first U.S. short bitcoin-linked ETF, in 2022. These new ETFs are expected to further legitimize cryptocurrency investments and could potentially attract a new wave of institutional investors.

Michael L. Sapir, CEO of ProShares, highlighted the growing demand for crypto-linked ETFs, citing the success of their bitcoin-linked ETF, BITO. Launched nearly two years ago, BITO has amassed more than $2 billion in net inflows and has become the largest crypto-linked ETF globally. “The launch of EETH is a response to substantial investor demand for a regulated financial product that targets ether,” said Sapir.

ProShares is also diversifying its offerings with the Bitcoin & Ether Equal Weight Strategy ETF (BETE) and the Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). BETE will undergo monthly rebalancing to maintain a 50/50 weighting between bitcoin and ether. In contrast, BETH will adjust its holdings based on the market capitalization of the two cryptocurrencies. “These groundbreaking ETFs offer investors the opportunity to target the performance of the two leading cryptocurrencies through a single transaction and a single ticker,” Sapir elaborated.

One of the key advantages of these new ETFs is their accessibility through traditional brokerage accounts. This eliminates the need for investors to set up a separate crypto custodian, exchange account, or wallet. “Our crypto-linked ETFs are designed to attract investors who are interested in cryptocurrencies but are concerned about the risks associated with custody or the complexities of direct purchases,” Sapir noted.

Unlike many other investment vehicles, these ETFs do not invest directly in cryptocurrencies. Instead, they primarily invest in ether and bitcoin futures. According to ProShares’ research, these futures have historically shown a .99 correlation with their respective cryptocurrencies, offering a near-perfect tracking of the underlying assets.

Image source: Shutterstock


Tagged : / / / / / / / / / / / /
Bitcoin (BTC) $ 41,191.04 6.13%
Ethereum (ETH) $ 2,210.31 6.54%
Litecoin (LTC) $ 71.94 7.04%
Bitcoin Cash (BCH) $ 229.61 8.74%