The World’s Premier Short Ether Strategy ETF

• ProShares has launched the first short ETF for Ethereum, allowing investors to bet on the price drop of the second-largest crypto in the market.
• Meanwhile, Ethereum has gained over 7.5% in the past month to hit a high of $1,870, it’s highest level since mid-August.

For most investors, the money only rolls in when the price of an asset appreciates. However, for traders, any day is payday, and they can generate profits even when the prices dip. With the new short Ether-linked ETF by ProShares, it’s now easier than ever to bet on an ETH price dip.

ProShares, one of the leaders in crypto-linked ETFs globally, announced this week the launch of Short Ether Strategy ETF (SETH), the world’s first short Ether-linked ETF.

“SETH is designed to address the challenge of acquiring short exposure to ether, which can be onerous and expensive,” commented Michael Sapir, the ProShares CEO.

“With today’s launch of SETH, ProShares now offers investors opportunities to profit both on days when ether increases and when it drops—all through the convenience of a traditional brokerage account.”

SETH will trade on NYSE’s Arca, an all-electronic securities exchange based in Chicago, Illinois, in the US. It taps on the Standard & Poor’s CME Ether Futures Index, delivering inverse returns to investors.

“You will lose money when the Index rises—a result that is the opposite from a traditional index fund. Obtaining inverse or ‘short’ exposure may be considered an aggressive investment technique,” ProShares states.

SETH is not recommended for retail traders without prior experience in short positions. If the S&P’s Ether Futures Index were to shoot up by 100% in any day, the investor would lose all their money as the two have an inverse relationship.

Shorting Ethereum is a calculated risk, as the coin has been on an uptrend recently. In the past month, it has gained 7.7% to trade at $1,791 at press time. It hit a high of $2,100 in April this year.

Ethereum ETFs Fail to Catch Up With Bitcoin ETFs

ETFs have become a popular investment vehicle, especially for institutional traders who prefer to steer clear of actual crypto due to regulatory restrictions. However, while Bitcoin ETFs have pulled in billions, Ether ETFs have struggled.

ProShares has launched three Ethereum ETFs, with one investing in Ether futures only while the other two combine it with BTC. They have failed to take off: the most successful one has barely hit $10 million.

In contrast, the ProShares Bitcoin Strategy ETF has recorded over $1 billion in assets.

The crypto market continues to await a spot-based Bitcoin ETF decision by the SEC. The regulator has shot several applications down, but more companies have continued to file new applications. It’s believed that whoever gets the first approval will have a head start, and its rivals are unlikely to catch up.  

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