ETF provider ProShares is poised to further expand its crypto offerings with an inverse Ethereum futures fund.
The planned ProShares Short Ether Strategy ETF (SETH) aims to gain exposure to potential declines in the Ethereum price.
ProShares filed details of the new fund on Friday, just weeks after debuting three long-only Ether Futures ETFs in early October. SETH would trade on NYSE Arca and track the inverse daily performance of the S&P CME Ether Futures Index.
The fund would allow investors to benefit from downward moves in Ethereum without directly shorting the asset.
According to ProShares, they expect the SEC to approve the registration statement on October 15th, with a launch target in early November.
SETH would join the provider’s Bitcoin inverse futures ETF, the Short Bitcoin Strategy fund launched in June 2022.
Currently, it has attracted around $75 million in assets so far. ProShares’ long Bitcoin futures ETF (BITO) remains the largest, with $850 million in assets under management.
The pending introduction of an inverse Ether product comes as Ethereum hovers near $1,500, down 6% in the past week. The cryptocurrency had rallied earlier in October on optimism over the SEC’s approval of futures-based ETFs.
On August 4, ProShares and Bitwise filed an application with the SEC for exchange-traded funds with a focus on bitcoin and ether. After which, ProShares moved quickly with VanEck and Bitwise to offer the first three Ether funds immediately after SEC greenlighting on October 2nd.
The products open crypto exposure to a broader investor base via the ETF structure’s convenience.
But the debut of an inverse fund also allows for capitalizing on potential volatility declines or bearish sentiment. ProShares has established itself as a leader in crafting diverse crypto investment vehicles for various market conditions.
The SEC took over two years to approve Ether Futures ETFs after the historic first Bitcoin fund. How fast the assets can grow remains uncertain amid the crypto market flux. However, tailored options continue to broaden access for investors with differing risk appetites.