ProShares has introduced the ProShares Short Ether Strategy ETF (SETH), marking the debut of the world’s initial short Ethereum (ETH)-linked exchange-traded fund (ETF). Set to trade on the New York Stock Exchange’s Arca, SETH seeks to deliver the inverse of the daily performance of the Standard & Poor’s CME Ether Futures Index. The ETF’s structure allows investors to profit from declines in the price of Ether, providing an alternative approach amid the cryptocurrency market’s evolving landscape.
SETH joins ProShares’ comprehensive lineup of cryptocurrency-linked ETFs, which includes offerings like the ProShares Bitcoin Strategy ETF (BITO), ProShares Short Bitcoin Strategy ETF (BITI), ProShares Ether Strategy ETF (EETH), ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), and ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE).
These ETFs leverage futures contracts on Bitcoin and Ether to target their performance, reflecting ProShares’ commitment to providing diverse investment opportunities in the evolving crypto landscape.
ProShares CEO, Michael L. Sapir, stated that SETH is specifically crafted “to address the challenge of acquiring short exposure to ether, which can be onerous and expensive.”
In contrast to spot price-based products, SETH is linked to futures contracts on Ether. The launch is seen as a strategic move in response to the growing interest in cryptocurrency ETFs, especially given the anticipation of regulatory approval for spot-based Bitcoin ETFs.