Last week, ProShares introduced a new product called the ProShares Short Ether Strategy ETF. This ETF is set to launch in November 2023.
Registration of SETH
According to the SEC’s recent filing archives, ProShares Trust has registered the Short Ether Strategy ETF under The Investment Company Act of 1940 and The Securities Act of 1933. The registration is expected to come into effect on October 15, and the fund will be introduced in early November.
Objective of Investment
The ProShares Short Ether Strategy ETF aims to represent the opposite (-1x) daily performance of the S&P CME Ether Futures Index. Instead of directly shorting ether, the fund seeks to profit from ether price declines.
Risks Attached to SETH
The Prospectus for the Short Ether Strategy ETF highlights various risks associated with the investment, including investment strategy risk, ether market volatility risk, ether futures risk, leverage risk, liquidity risk, short or inverse investing risk, and more.
In addition to the Short Ether Strategy ETF, ProShares has previously launched three other Ether futures funds. These funds debuted on October 2 alongside similar offerings from VanEck and Bitwise. The approval of these Ether futures ETFs by the U.S. Securities and Exchange Commission follows the introduction of the first Bitcoin futures ETF by ProShares in October 2021.
With the launch of the ProShares Short Ether Strategy ETF, ProShares is expanding its range of cryptocurrency investment products. This new ETF provides investors with an opportunity to profit from declines in the price of ether. As the cryptocurrency market continues to evolve, ProShares is positioning itself as a leading provider of crypto-focused investment options.
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