ProShares to Launch Short Ether Strategy ETF (SETH) in November

ProShares is gearing up to introduce a unique offering to the market. The firm recently launched three Ethereum futures ETFs and is now preparing to debut the ProShares Short Ether Strategy ETF (SETH).

This new ETF is poised to launch in early November, just a few weeks after the initial Ethereum futures ETFs debuted.

ProShares Adds SETH to its Crypto ETF Lineup

According to a recent filing, SETH will be listed on the NYSE Arca exchange. It is designed to deliver daily investment results that align with the inverse performance of the S&P CME Ether Futures Index.

It’s worth noting that SETH does not directly short Ethereum (ETH) but instead aims to capitalize on declines in the asset’s price, as outlined in the prospectus.

UPDATE: ProShares will be launching a short #Ethereum Futures ETF. Looks like it should begin trading on October 16th (This coming Monday).
Ticker is $SETH
h/t @NateGeraci pic.twitter.com/RdhtRtXWSY

— James Seyffart (@JSeyff) October 13, 2023

According to Bloomberg ETF analyst James Seyffart, ProShares is anticipating the registration statement for SETH to become effective on Oct. 15, with the official launch of the ETF slated for early November.

This move follows ProShares’ introduction of three Ethereum futures funds earlier this month. Among these, two ETFs invest in both Ethereum and Bitcoin futures contracts. The trio of Ethereum ETFs made their debut on Oct. 2, joining similar products from VanEck and Bitwise in a rapidly expanding market.

Notably, the U.S. Securities and Exchange Commission’s approval of Ethereum futures ETFs arrived nearly two years after the introduction of the first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF, which entered the market in October 2021.

ProShares Ventures into Crypto ETFs

ProShares has been a trailblazer in the cryptocurrency ETF space, previously releasing Bitcoin futures ETFs, including the Short Bitcoin Strategy ETF, in June 2022. The ProShares Bitcoin Strategy ETF has accumulated approximately $850 million in assets, while the Short Bitcoin Strategy ETF boasts around $75 million in assets.

The growing interest in cryptocurrency-based ETFs is evident, with investment firms increasingly looking to capitalize on the trend. After BlackRock filed for a Bitcoin ETF, numerous other firms rallied behind it, all seeking to introduce their Bitcoin-related investment products. Now, these firms are shifting their focus to Ethereum, with a notable surge in interest in creating Ethereum ETFs.