ProShares, a major issuer of exchange-traded funds (ETFs), has introduced the first ETF designed to short ether as the cryptocurrency market experiences heightened volatility.
The ProShares Short Ether Strategy ETF (SETH) began trading on the New York Stock Exchange on November 2nd. It aims to allow investors to profit from declines in ETH’s price through exposure to ETH futures contracts.
“SETH is designed to address the challenge of acquiring short exposure to ether, which can be onerous and expensive,” said ProShares CEO Michael Sapir in announcing the new fund.
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ProShares launch comes amidst market volatility
The launch comes amid whipsawing prices across crypto markets in 2023. ProShares said the fund offers a convenient way to bet against further ETH drops within traditional brokerage accounts.
ProShares has rolled out other crypto-linked ETFs. These include funds that track Bitcoin, provide inverse Bitcoin exposure, and target blended BTC and ETH performance. Its Bitcoin Strategy ETF was one of the first Bitcoin funds approved in the US last year.
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Now the issuer hopes to capitalize on volatile crypto conditions with a simple vehicle, allowing traders to profit when the price declines. The unpredictable crypto market has created demand for such sophisticated instruments.