Benzinga - ProShares announced Thursday it will launch the ProShares Short Ether Strategy (SETH) for delivering the inverse of the daily performance of the Standard & Poor's CME Ether Futures Index, reported CoinGape.
If the index fell 1%, the ETF would want to return 1%. Targeting the bearish investors, the new product was tied to futures contracts on Ethereum, rather than the spot price for the token.
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ProShares Short Ether Strategy would start trading on the New York Stock Exchange’s (NYSE) Arca.
ProShares CEO Michael Sapir noted in a statement that the new inverse Ethereum ETF was designed "to address the challenge of acquiring short exposure to ether, which can be onerous and expensive."
Price Action: Ethereum prices were trading 2.5% down in the past 24-hour trade while in the past year, the token price saw an increase of 17%.
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Roxana Islam, head of sector and industry research at VettaFi, said, “This kind of inverse strategy can't easily be displaced or replaced by a spot product.” She added that it was sensible for ProShares to launch an inverse Ethereum product.
Other ETFs By ProShares: In early October 2023, ProShares launched three out of nine new Ethereum ETFs with ProShares Ether Strategy ETF single focus on Ethereum while the remaining two offered combined exposure to both Ethereum and Bitcoin. In its first month, the ProShares Ether Strategy ETF (NYSEARCA: EETH) averaged around 8,660 shares daily.
Also Read: Grayscale Files For Ether Futures ETF Following Court Victory Against SEC
The ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) gathered assets worth around $1 billion (average daily volumes of about 9.4 million shares) within its initial days, reported Blockworks. ProShares Short Bitcoin Strategy had around $74 million in assets.
Meanwhile, the most substantial Ethereum futures ETF managed to collect less than $10 million, reported CoinGape.
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