ProShares has earlier at the moment announced the launch of an exchange-traded fund (ETF) tailor-made for traders seeking to guess towards Ethereum, the world’s second-largest crypto by market capitalization.
The ProShares Quick Ether Technique ETF is a monetary instrument that goals to offer returns that inversely correspond to the day by day efficiency of its underlying index, the Normal & Poor’s CME Ether Futures Index.
This ETF by ProShares is structured to extend in worth when the value of Ethereum decreases, providing a strategic instrument for traders who maintain a bearish outlook on the way forward for this specific digital asset.
Based on the announcement, that is the primary of its sort for Ethereum, giving investors a new way to engage with the volatile crypto market with out immediately shorting the asset.
Navigating The Ethereum Market With Futures-Based mostly ETFs
Whereas traders are keenly awaiting the US Securities and Trade Fee’s approval for spot crypto ETFs, the market has been supplied with alternate options tied to futures contracts.
The ProShares Quick Ether Strategy ETF joins these ranks, differentiating itself by specializing in the inverse efficiency of Ethereum’s worth actions.
The primary few days of October October noticed the primary batch of Ethereum ETFs launched, with ProShares unveiling three out of 9 new merchandise. Nonetheless, the reception was tepid in comparison with the enthusiastic response garnered by their Bitcoin Technique ETF beforehand.
Michael Sapir, CEO of ProShares, highlighted the brand new product as an answer to the difficulties related to acquiring quick positions in Ether, which may typically be cumbersome and expensive. Sapir famous:
SETH is designed to deal with the problem of buying quick publicity to ether, which could be onerous and costly.
Challenges And Potential Of Inverse Crypto ETFs
Notably, this ETF follows within the footsteps of ProShares’ inverse offering in the Bitcoin space, the ProShares Quick Bitcoin Technique ETF, which at the moment holds roughly $74 million in assets, in keeping with Reuters.
Regardless of its method, the ProShares Quick Bitcoin Technique ETF has not been proof against market pressures. After reaching an all-time excessive after the FTX collapse, the fund’s value has since considerably declined, falling to a file low this yr.
For context, just over a yr in the past, this fund was celebrated in its peak worth of $45.61. Nonetheless, it has since declined to $16.03, on the time of writing, representing a drop of over 60% inside the previous yr.
Moreover, on the time of writing, ProShares Quick Ethereum Technique ETF doesn’t appear to have any chart but when searched on TradingView. Nonetheless, on the image overview web page, TradingView exhibits a price of $40.43.
Featured picture from Unsplash, Chart From TradingView