ProShares, a leading provider of exchange-traded funds (ETFs), has launched the first ETF that allows investors to short Ether, the native cryptocurrency of the Ethereum blockchain. The ProShares Short Ether Strategy ETF (ETHS) is designed to deliver the inverse of the daily performance of the Standard & Poor’s CME Ether Futures Index. This means that if the index falls 1%, the ETF will seek to return 1%.

According to a Reuters report, the product provides investors with a new way to hedge their exposure to Ether and to profit from a decline in its price. ETHS is also the first ETF to offer short exposure to Ether, which could make it attractive to institutional investors and other sophisticated traders.

Speaking on the product, Michael L. Sapir, CEO of ProShares said,

 “We are excited to launch the first ETF that allows investors to short Ether. ETHS provides a convenient and efficient way for investors to hedge their exposure to Ether or to profit from a decline in its price. We believe that ETHS will be a valuable tool for investors who are looking to manage their risk and exposure to the cryptocurrency market.”

ETHS could help to dampen the impact of large sell-offs

The launch of ETHS has a number of potential implications for the cryptocurrency market. First, it could help to reduce the volatility of Ether prices. By providing investors with a way to short Ether, ETHS could help to dampen the impact of large sell-offs.

The launch of ETHS could also attract more institutional investors to the cryptocurrency market. Institutional investors are often hesitant to invest in cryptocurrencies due to their volatility and lack of regulation. However, ETHS offers a familiar and regulated investment vehicle for shorting Ether, which could make it more attractive to institutional investors.

A new way to hedge their exposure to Ether and to profit from a decline in its price

Meltem Demirors, Chief Strategy Officer at CoinShares said, 

“The launch of ETHS is a significant development for the cryptocurrency market. It provides investors with a new way to hedge their exposure to Ether and to profit from a decline in its price. ETHS is also the first ETF to offer short exposure to Ether, which could make it attractive to institutional investors and other sophisticated traders.”

The launch of ETHS could lead to the development of more short-selling ETFs for other cryptocurrencies. If ETHS is successful, it could pave the way for the launch of similar ETFs for other popular cryptocurrencies, such as Bitcoin and Litecoin.

ETHS could attract institutional investors to the market

Chris Concannon, CEO of Bybit America said,

“The launch of ETHS is a positive development for the cryptocurrency market, as it provides investors with more options for managing their risk and exposure to Ether. ETHS could also help to bring more institutional investors into the cryptocurrency market, as it offers a familiar and regulated investment vehicle for shorting Ether.”

Potential to profit from price decline

The launch of ETHS provides investors with a new way to hedge their exposure to Ether and to profit from a decline in its price. ETHS is also the first ETF to offer short exposure to Ether, which could make it attractive to institutional investors and other sophisticated traders.

The launch of ETHS has a number of potential implications for the cryptocurrency market, including reducing the volatility of Ether prices, attracting more institutional investors, and leading to the development of more short-selling ETFs for other cryptocurrencies.sharemore_vert