ProShare, a pioneer in the digital assets linked exchange-traded funds (ETFs) segment moves ahead to introduce the world’s first short ETF (SETH) that allows investors to bet the downside of the second-largest global cryptocurrency Ethereum (ETH). This development comes in when ETH price seems to be on a recovery road by surging over 12% in the last 60 days.
ETH Shorts To Spike?
According to ProShares CEO Michael L. Sapir, the newly launched ProShares Short Ether Strategy ETF (SETH) is designed to address the challenge of acquiring short exposure to Ethereum as it can be expensive for traders. He added that now the firm offers investors an opportunity to book profit on both days when ETH price jumps and slumps. In simpler terms, should the index witness a 1% decline, the ETF aims to yield a corresponding 1% return.
The initial batch of Ethereum linked ETFs collectively made their debut in early October when ProShares opened three out of the nine new offerings. The ProShares Ether Strategy ETF, part of this collection, exclusively provides exposure to ETH, distinguishing itself from the other two that combine exposure to both ether and bitcoin.
The anticipation around the recently launched ETH ETFs has been low compared to ProShares Bitcoin Strategy ETF. The newly introduced ether futures ETFs have accrued less than $10 million in assets while BTC Stragery ETF gained around $1 billion in assets in its initial trading days.
Awaiting SEC Approval for Spot Bitcoin ETFs
It is important to note that global financial players eagerly await the U.S. Securities and Exchange Commission’s (SEC) approval for spot bitcoin ETFs. A division of Allianceberstein, Bernstein Research reportedly projected that the U.S. SEC might approve the first spot Bitcoin Exchange-Traded Fund (ETF) by January 10, 2024. The forecast follows the commission’s verdict of not to contest the Grayscale decision. However, a legal dialogue around the ETF application between both parties is ongoing.