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November 2, 2023

ProShares Launches Short Ether Strategy ETF: A Bearish Opportunity for Investors

Ethan Lim
Written byEthan LimWriter
Researched byNikos PapadopoulosResearcher

Introduction

ProShares, a leading provider of exchange-traded funds (ETFs), has recently launched a new ETF called the ProShares Short Ether Strategy. This ETF allows investors to take a bearish stance on ether, the second-largest cryptocurrency in the world.

ProShares Launches Short Ether Strategy ETF: A Bearish Opportunity for Investors

Key Points

  • The ProShares Short Ether Strategy ETF aims to return an equivalent of 1% if the Standard & Poor’s CME Ether Futures Index drops by 1%.
  • The fund's approach is tied to futures contracts on ether, rather than the spot price of the token.
  • ProShares has previously launched three other ether ETFs, including one that focuses solely on ether and two that offer combined exposure to ether and bitcoin.
  • The reception to these ether ETFs has been lukewarm, with the most substantial ether futures ETF accumulating less than $10 million in assets.
  • ProShares CEO, Michael Sapir, explained that the inverse ether ETF addresses the challenge of acquiring short exposure to ether, which can be cumbersome and costly.
  • VanEck, another major player in the cryptocurrency market, has recently revised its Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC) to back the ETF with funds rooted in physical BTC.

Conclusion

The introduction of the ProShares Short Ether Strategy ETF provides investors with an opportunity to take a bearish position on ether. While the reception to these ether ETFs has been modest, they offer a unique way to gain exposure to the cryptocurrency market. Additionally, the revision of VanEck's Bitcoin ETF application highlights the ongoing activity in the BTC ETF landscape. Investors should closely monitor these developments as they navigate the evolving world of cryptocurrency investments.

About the author
Ethan Lim
Ethan Lim
About

Ethan Lim, a native of the Lion City, is Singapore’s rising star in the domain of online casino guide localization. He masterfully blends his intimate knowledge of local culture with international gaming standards to produce content that resonates deeply with Singaporeans.

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