ProShares Unveils World's First Short Ether-Linked ETF

Bethesda-based financial giant, ProShares, has once again taken a pioneering step in the crypto-linked ETF domain with the launch of the world’s first short ether-linked ETF, named ProShares Short Ether Strategy ETF (SETH), according to BusinessWire. This innovative ETF is engineered to give investors a lucrative avenue on days when Ether’s value descends. The announcement came on November 2, 2023, further solidifying ProShares' standing as a trailblazer in the crypto-linked ETF landscape.

SETH is meticulously crafted to simplify the once arduous and costly task of acquiring short exposure to ether. ProShares CEO, Michael L. Sapir, elucidated that SETH is a beacon for investors aiming to gain on both the ups and downs of ether pricing, all within the familiar framework of a conventional brokerage account. This newly launched ETF not only broadens ProShares’ crypto-focused offerings but also addresses a market demand for straightforward short exposure to ether.

This is not ProShares’ first foray into the crypto realm. The firm had previously set the stage by launching the first U.S. bitcoin-linked ETF, BITO, in 2021, which quickly climbed the ranks to become the largest crypto-linked ETF globally. Following BITO, ProShares introduced BITI, the first U.S. short bitcoin-linked ETF, EETH, targeting ether’s performance, and two blended bitcoin and ether performance-oriented ETFs, BETH and BETE. The advent of SETH is a significant addition to this already robust lineup of crypto-linked ETFs, demonstrating ProShares' commitment to catering to the evolving investor preferences in the cryptocurrency space.

SETH is listed on the New York Stock Exchange and is structured to deliver the inverse of the daily performance of the S&P CME Ether Futures Index. Similar to its siblings in the ProShares crypto-linked ETF family, SETH aims to achieve exposure through ether futures contracts. This characteristic underscores ProShares’ strategy of leveraging futures contracts to provide investors a structured pathway to engage with the cryptocurrency market, mitigating some challenges associated with direct cryptocurrency investments.

With roots dating back to 2006, ProShares has been a vanguard in the ETF revolution. The firm, along with its affiliates, oversees over $60 billion in assets, offering a vast array of ETF strategies, including crypto-linked, dividend growth, and geared (leveraged and inverse) ETF investing. ProShares’ tradition of innovation continues with the launch of SETH, providing investors with tactical opportunities to manage risk and enhance returns in a market known for its volatility.