ProShares, a prominent investment firm, is all set to launch an innovative financial product known as the Short Ether Strategy ETF (SETH). This move comes shortly after the introduction of the first Ethereum futures ETFs by ProShares, marking an intriguing development in the crypto investment landscape.
Scheduled for trading on the NYSE Arca exchange, the Short Ether Strategy ETF (SETH) aims to deliver daily results that mirror the opposite performance of the daily S&P CME Ether Futures Index, as outlined in the filing submitted on Friday, October 13th.
It’s important to note that SETH doesn’t involve directly shorting the cryptocurrency Ethereum (ETH), which is currently priced at approximately $1,540, reflecting a recent 6% decline. Rather, the ETF seeks to capitalize on potential downward movements in the value of ETH, as described in the prospectus.
The registration statement for SETH is expected to become effective on October 15th, with plans for the fund’s official launch in early November, as reported by Blockworks.
This development follows ProShares’ successful introduction of three Ethereum futures funds, including two that invest in both Ethereum and Bitcoin futures contracts. These funds made their debut on October 2nd, aligning with similar offerings from VanEck and Bitwise.
The Securities and Exchange Commission (SEC) greenlit the Ethereum futures ETFs two years after approving the initial Bitcoin futures ETF, known as the ProShares Bitcoin Strategy ETF (BITO), which entered the market in October 2021.
ProShares previously expanded its portfolio of Bitcoin futures ETFs with the Short Bitcoin Strategy ETF (BITI) in June 2022. As of now, BITO has amassed around $850 million in assets, while BITI holds approximately $75 million.
Notably, the anticipation surrounding the potential approval of Ether futures ETFs in October had triggered an 11% surge in ETH prices a few months ago,
