ProShares launches inverse Ether ETF

ProShares, a leading investment firm, announced the launch of the ProShares Short Ether Strategy ETF. This exchange-traded fund (ETF) allows investors to adopt a bearish stance on Ethereum, providing a hedging mechanism against the digital currency’s price fluctuations.

The ProShares Short Ether Strategy ETF aims to deliver the inverse of the daily performance of the Standard & Poor’s CME Ether Futures Index. In simpler terms, if the index experiences a 1% decrease, the ETF will strive to yield a 1% return. This ETF, tied to futures contracts on Ethereum, offers investors a strategic approach to managing their risk exposure in the cryptocurrency market.

In early October, the first group of ether ETFs made their debut, with ProShares launching three out of the nine new vehicles. The ProShares Ether Strategy ETF offers exclusive exposure to ether, while the remaining two combine exposure to both ether and bitcoin. Despite the initial excitement, the reception of these ETFs was modest, especially in comparison to the success of the ProShares Bitcoin Strategy ETF, which amassed approximately $1 billion in assets within its inaugural days of trading. The largest of the new ether futures ETFs currently holds assets totalling below $10 million.

ProShares CEO, Michael Sapir, stated in a press release that the introduction of the inverse ether ETF addresses the challenge of acquiring short exposure to ether, a process previously considered burdensome and costly. With the ProShares Short Ether Strategy ETF, investors now have a cost-effective tool to manage their risk exposure in the Ethereum market.