Coinfeeds Daily → ProShares Launches SETH: World's First Short Ether-Linked Futures ETF

ProShares Launches SETH: World's First Short Ether-Linked Futures ETF

Published: Nov 03, 2023 | Last Updated: Nov 03, 2023
Howard Kane

New ETF allows traders to profit from a drop in ether's price, expanding ProShares' crypto portfolio

ProShares, a leading provider of ETFs, has launched the world's first short ether-linked futures ETF, named SETH. This innovative financial product allows traders to profit from a drop in the price of ether, the second-largest cryptocurrency by market capitalization. The launch of SETH expands ProShares' existing crypto ETF portfolio, which includes other crypto-linked ETFs such as BITO, BITI, EETH, BETH, and BETE.

SETH: A Unique Offering in the Crypto Market

SETH is designed to deliver the inverse of the daily performance of the S&P CME Ether Futures Index. This means that if the index falls in value, the ETF's value will rise, and vice versa. This unique feature makes SETH an attractive option for bearish traders who expect the price of ether to drop.

Unlike other ETFs, SETH is tied to futures contracts on ether, not the spot price for the token. This distinction is important because futures contracts allow investors to speculate on the future price of an asset, rather than its current price. This can provide additional opportunities for profit, especially in volatile markets like cryptocurrency.

Convenience and Accessibility

One of the main advantages of SETH is its convenience. It offers investors the opportunity to acquire short exposure to ether without the usual challenges and expenses. Investors can trade SETH through a traditional brokerage account, making it easily accessible to a wide range of traders.

A Growing Trend in Crypto ETFs

The launch of SETH is part of a growing trend in the financial industry towards offering more crypto-linked ETFs. While the market is still waiting for the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission, ProShares has taken the opportunity to launch an inverse ether product. This move demonstrates the increasing interest and confidence in cryptocurrency as a legitimate asset class.

In conclusion, the launch of SETH by ProShares represents a significant development in the crypto market. It provides traders with a new way to profit from price movements in ether, and it further legitimizes cryptocurrency as a viable asset class. As the crypto market continues to evolve, we can expect to see more innovative products like SETH in the future.

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