ProShares, a leading provider of exchange-traded funds (ETFs), has introduced two innovative ETFs designed to offer leveraged and inverse exposure to Ethereum’s ether. Launched today, the ProShares Ultra Ether ETF (ETHT) and the ProShares UltraShort Ether ETF (ETHD) are the newest additions to the company’s wide range of cryptocurrency-related investment products.
ETHT aims to provide double the daily return of ether, while ETHD offers investors the opportunity to gain exposure to double the inverse of ether’s daily performance. This launch demonstrates ProShares’ commitment to expanding investment options in the cryptocurrency market.
The debut of ETHT and ETHD on the New York Stock Exchange represents a significant milestone for ProShares and investors seeking to amplify their investment results or hedge against ether’s volatility without directly investing in the cryptocurrency.
Michael L. Sapir, CEO of ProShares, emphasized the significance of these ETFs, highlighting their ability to simplify the complexities and high costs typically associated with obtaining leveraged or inverse exposure to cryptocurrencies. This strategic decision is aimed at meeting the changing needs of investors in a market characterized by rapid fluctuations and significant price changes.
ProShares has been at the forefront of cryptocurrency-linked ETFs since launching the first U.S. bitcoin-linked ETF in October 2021. The company has introduced a range of crypto-linked ETFs, including the first U.S. short bitcoin-linked ETF and the initial ETF targeting ether’s performance.
These products do not directly invest in cryptocurrencies but seek to replicate their performance through futures contracts and other derivative instruments. This approach provides investors with a regulated and familiar way to participate in the potential growth of digital assets.
ProShares’ innovation in ETFs extends beyond cryptocurrencies. Established in 2006, the company manages over $70 billion in various ETF offerings, including dividend growth, interest rate hedged bond, and geared (leveraged and inverse) ETFs.
The launch of ETHT and ETHD continues ProShares’ tradition of introducing products that cater to specific investor needs, offering strategic and tactical opportunities to manage risks and enhance returns.
This expansion into ether-based products by ProShares reflects a broader trend in the industry towards incorporating more diverse and sophisticated financial instruments related to digital assets.
As the cryptocurrency market evolves, the demand for products that can offer enhanced exposure to digital assets while mitigating risks associated with direct cryptocurrency investments continues to rise. ProShares’ latest ETFs are expected to play a significant role in this evolution, providing investors with new ways to leverage the volatile nature of the crypto markets for potential gains.
ETHT and ETHD are likely to attract a wide range of investors, from those seeking portfolio diversification to active traders looking to capitalize on ether’s price movements.
