Bethesda-based ProShares Unveils World’s First Short Ether-Linked ETF

ProShares, a leading financial firm based in Bethesda, has once again demonstrated its pioneering spirit in the realm of crypto-linked ETFs. The company recently launched the ProShares Short Ether Strategy ETF (SETH), making it the world’s first ETF focused on short-selling ether. With this innovative creation, ProShares aims to provide investors with a profitable avenue during periods of decreasing value for ether. The official announcement was made on November 2, 2023, solidifying ProShares’ position as a trailblazer in the field of crypto-linked ETFs.

A Revolutionary Solution for Gaining Short Exposure to Ether

SETH has been meticulously designed to simplify and reduce the costs associated with acquiring short exposure to ether. Michael L. Sapir, the CEO of ProShares, explained that SETH offers investors the ability to profit from both bull and bear markets of ether, all within the convenience of a traditional brokerage account. This groundbreaking ETF not only expands ProShares’ range of crypto-focused offerings, but also meets the market demand for a straightforward method of gaining short exposure to ether.

Building on Past Successes in the Crypto Realm

This isn’t ProShares’ first venture into the world of cryptocurrencies. The company first made waves in 2021 with the launch of BITO, the first bitcoin-linked ETF in the United States. BITO quickly rose to become the largest crypto-linked ETF globally. Following its success, ProShares introduced BITI, the first short bitcoin-linked ETF in the U.S., as well as EETH, which tracks ether’s performance. Additionally, ProShares launched BETH and BETE, two ETFs that combine the performances of bitcoin and ether. With the launch of SETH, ProShares further strengthens its impressive lineup of crypto-linked ETFs, reaffirming the company’s dedication to meeting the evolving preferences of cryptocurrency investors.

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SETH: Listed on the New York Stock Exchange

SETH is listed on the New York Stock Exchange and is designed to offer the inverse of the daily performance of the S&P CME Ether Futures Index. Like its counterparts in the ProShares crypto-linked ETF family, SETH achieves exposure through ether futures contracts. This feature highlights ProShares’ strategy of using futures contracts as a structured pathway for investors to engage with the cryptocurrency market, mitigating certain challenges associated with direct cryptocurrency investments.

A Pioneer in ETFs with a Strong Tradition of Innovation

ProShares has been at the forefront of the ETF revolution since its establishment in 2006. In collaboration with its affiliates, the company oversees more than $60 billion in assets, offering a diverse range of ETF strategies, including crypto-linked, dividend growth, and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with the introduction of SETH, providing investors with tactical opportunities to manage risks and maximize returns in a highly volatile market.

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