ProShares, an investment firm, has recently introduced three Ethereum futures exchange-traded funds (ETFs). The company is now preparing to launch a unique offering called the Short Ether Strategy ETF (SETH) on the NYSE Arca exchange.
SETH is designed to provide investors with daily returns that mirror the opposite performance of the S&P CME Ether Futures Index. The fund aims to capitalize on potential declines in the value of ether (ETH), the native cryptocurrency of the Ethereum blockchain.
It is important to note that SETH does not directly short ether but rather seeks to profit from the asset’s potential decrease in value. As of Friday, October 13, the price of ETH was around $1,540, reflecting a 6% decrease over the past week.
According to a filing made by ProShares on October 13, it is expected that the registration statement for SETH will become effective on October 15. The company plans to launch the fund in early November.
ProShares had already debuted three other ether futures funds on October 2, alongside similar offerings from VanEck and Bitwise. These funds invest in both ether and bitcoin futures contracts and have gained approval from the US Securities and Exchange Commission (SEC).
The approval of ether futures ETFs comes two years after the launch of the first bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), in October 2021. ProShares also released the Short Bitcoin Strategy ETF (BITI) in June 2022. Currently, BITO has accumulated around $850 million in assets, while BITI has approximately $75 million.
There has been anticipation in the market for the approval of ether futures ETFs, with reports suggesting that they might be approved in October. This speculation led to an 11% increase in ETH prices at the time.
The introduction of these ETFs further highlights the growing interest and acceptance of cryptocurrencies in the traditional finance space. Investors now have more options to gain exposure to the potential upside or downside of digital assets like ether, which may attract both institutional and retail investors.
As the market continues to evolve, it will be interesting to see how these ETFs perform and if more innovative investment products related to cryptocurrencies will be introduced in the future.