ProShares Adds New Member to Ethereum Futures ETF Series. ProShares Fund Group is taking the initiative to broaden its selection of cryptocurrency exchange-traded funds (ETFs). Following the launch of the first Ethereum futures ETFs a few weeks ago, the company is getting ready to launch a new product.
A new addition to ProShares’ Ethereum Futures ETF series has increased investors’ exposure to the cryptocurrency market. This decision expands the opportunities for diversification and takes advantage of the rising interest in Ethereum.
Launch of Short Ether Strategy ETF (SETH)
The Short Ether Strategy ETF (SETH) from ProShares will soon start trading on the NYSE Arca exchange. But it’s crucial to understand that SETH isn’t actually shorting Ethereum; rather, it wants to profit from any potential price drops. With the introduction of the Short Ether Strategy ETF (SETH), investors now have a new resource to benefit from declining Ethereum prices. With SETH, traders will be able to wager against the value of the Ether cryptocurrency by receiving inverse daily returns of its performance. For supporters of Ethereum, this ETF offers a bearish strategy.
How SETH Responds to Changes in the Price of Ethereum
SETH does not trade ether directly, but it is made to profit from drops in the price of the cryptocurrency. The price of Ethereum was around $1,540 on Friday, down about 6% from the previous week.
ProShares Adds New Member to Ethereum Futures ETF Series. ProShares anticipates that the SETH registration statement will take effect on October 15 and that the fund will begin operations in early November.
Investors have a novel strategy available thanks to the Short Ether Strategy ETF (SETH), which is built to react in the opposite direction to changes in the price of Ethereum (ETH). SETH uses a short position to try to generate profits every day when the price of Ethereum declines. In contrast, SETH
is probably going to lose money if the price of Ethereum rises.
Increased Ethereum Futures ETF Offerings
ProShares recently introduced three Ethereum futures ETFs, including one that holds both ether and bitcoin futures contracts. This action follows the October 2 launches of related products by VanEck and Bitwise. Two years prior to the United States Securities and Exchange Commission (SEC) approving ether futures ETFs, the ProShares Bitcoin Strategy ETF (BITO), the first bitcoin futures ETF, debuted on the market in October 2021.
These ETFs give investors a regulated and practical way to trade futures contracts, allowing them to speculate on the price of Ethereum without actually owning it.
Examining the Bitcoin Futures ETFs from ProShares
The Bitcoin Futures ETFs offered by ProShares have drawn a lot of interest from the financial community. Through futures contracts, these exchange-traded funds give investors. ProShares Bitcoin Strategy ETF (BITO) and ProShares. Bitcoin Strategy ETF II (BITOII) has grown in popularity. Careful examination and research are therefore essential before investing in these products.