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ProShares is known for its products targeted at bull/bear investing on several asset classes. As far as cryptocurrency is concerned, the sponsor has both bull and bear version of bitcoin. Now, the issuer is looking to expand its presence in ether (ETH), the second-largest cryptocurrency by market value.
As ProShares already had bull version ETFs on ether, namely – ProShares Ether Strategy ETF (EETH - Free Report) , ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH - Free Report) and ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE - Free Report) , the issuer has now launched the bear/inverse version on ether with Short Ether Strategy ETF (SETH - Free Report) .
Inside SETH
The fund looks to track daily investment results that correspond, before fees and expenses, to the inverse (-1x) of the daily performance of its underlying benchmark - the S&P CME Ether Futures Index. The index measures the performance of the front-month ether futures contract trading on the Chicago Mercantile Exchange.
If the index falls 1%, the ETF would result in return 1%. Notably, the newbie is linked to futures contracts on Ethereum, rather than the spot price for the token. The fund charges 95 bps in net fees.
How Does It Fit In a Portfolio?
Although institutional interest grew in the cryptocurrency space, especially for bitcoin, there was a brief return of volatility in the cryptocurrency market during the third quarter of 2023, with Ether's price falling 15% from its previous annual highs. This drop occurred after two consecutive quarters of rising prices for the leading cryptocurrencies, including Bitcoin and Ether???, per CME Group.
Despite an upbeat year so far for crypto market, it's important to note that the cryptocurrency market is inherently volatile and subject to various influencing factors, both internal and external.
Can It See Success?
Normally, such inverse ETFs do not see the same level of success as their straight counterparts. For example, the ProShares Bitcoin Strategy ETF (BITO - Free Report) amassed assets worth around $1 billion within its initial days, whereas the ProShares Short Bitcoin Strategy (BITI - Free Report) has accumulated about $78 million in assets so far.
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Inside The New-Launched Inverse Ether ETF (SETH)
ProShares is known for its products targeted at bull/bear investing on several asset classes. As far as cryptocurrency is concerned, the sponsor has both bull and bear version of bitcoin. Now, the issuer is looking to expand its presence in ether (ETH), the second-largest cryptocurrency by market value.
As ProShares already had bull version ETFs on ether, namely – ProShares Ether Strategy ETF (EETH - Free Report) , ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH - Free Report) and ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE - Free Report) , the issuer has now launched the bear/inverse version on ether with Short Ether Strategy ETF (SETH - Free Report) .
Inside SETH
The fund looks to track daily investment results that correspond, before fees and expenses, to the inverse (-1x) of the daily performance of its underlying benchmark - the S&P CME Ether Futures Index. The index measures the performance of the front-month ether futures contract trading on the Chicago Mercantile Exchange.
If the index falls 1%, the ETF would result in return 1%. Notably, the newbie is linked to futures contracts on Ethereum, rather than the spot price for the token. The fund charges 95 bps in net fees.
How Does It Fit In a Portfolio?
Although institutional interest grew in the cryptocurrency space, especially for bitcoin, there was a brief return of volatility in the cryptocurrency market during the third quarter of 2023, with Ether's price falling 15% from its previous annual highs. This drop occurred after two consecutive quarters of rising prices for the leading cryptocurrencies, including Bitcoin and Ether???, per CME Group.
Despite an upbeat year so far for crypto market, it's important to note that the cryptocurrency market is inherently volatile and subject to various influencing factors, both internal and external.
Can It See Success?
Normally, such inverse ETFs do not see the same level of success as their straight counterparts. For example, the ProShares Bitcoin Strategy ETF (BITO - Free Report) amassed assets worth around $1 billion within its initial days, whereas the ProShares Short Bitcoin Strategy (BITI - Free Report) has accumulated about $78 million in assets so far.