ProShares to Debut Short Ether Strategy ETF, Aiming to Profit from ETH Value Drops
Summary:
ProShares is preparing to debut the Short Ether Strategy ETF (SETH), set to trade on the NYSE Arca exchange. The fund aims to profit from potential decreases in Ether (ETH)'s value, as of now clocking at approximately $1,540. ProShares anticipates the SETH registration to be effective from Oct.15, with plans to launch the fund in early November. This comes after the company launched Ethereum futures ETFs recently, two years after the approval of the original Bitcoin Strategy ETF (BITO), with BITO currently holding around $850 million in assets.
In recent times, ProShares has launched a series of Ethereum futures Exchange-Traded Funds (ETFs) and is now preparing for a distinctive offering. Shortly, the financial group's ProShares Short Ether Strategy ETF (SETH) is set to begin trading, approximately two weeks after the launch of the initial Ethereum futures ETFs. SETH, which is designed for listing on the NYSE Arca exchange, intends to accomplish daily investment outcomes that inversely mirror the S&P CME Ether Futures Index performance, as per a filing dated Friday, Oct.13. This fund does not participate in direct shorting of ether (ETH) but aims to profit from future drops in the asset's price as outlined in the prospectus. As of Friday, ETH's price was roughly $1,540, marking about a 6% reduction in the asset's value over the preceding week. According to Blockworks, the registration statement for SETH is expected to be in effect from Oct.15, and the fund is scheduled to be launched in early November. Meanwhile, the debut of the ProShares ether futures funds, which include two funds that invest in both ether and bitcoin futures contracts, took place on Oct. 2, coinciding with the launch of similar products by VanEck and Bitwise. The ProShares Bitcoin Strategy ETF (BITO), the first-ever bitcoin futures ETF, was approved by the US Securities and Exchange Commission and debuted in Oct. 2021, two years after the approval of ether futures ETFs. ProShares then followed up with the introduction of the Short Bitcoin Strategy ETF (BITI) in June 2022. As of now, BITO has amassed about $850 million in assets, while BITI holds around $75 million. In Aug. Ethereum futures ETFs were predicted to recieve approval in October, which led to an 11% surge in ETH prices at that time, as reported by Cointelegraph.
Published At
10/14/2023 7:20:52 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.