ProShares, a leader in exchange-traded funds (ETFs), has unveiled two groundbreaking ETFs designed to provide 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 latest additions to the firm’s extensive portfolio of cryptocurrency-linked investment products.Â
ETHT aims to deliver twice the daily return of ether, while ETHD offers the unique opportunity for investors to gain exposure to double the inverse of ether’s daily performance. This launch underscores ProShares‘ commitment to expanding accessible investment options in the cryptocurrency space.
The introduction of ETHT and ETHD on the New York Stock Exchange marks a significant milestone for ProShares and for investors looking to magnify their investment outcomes or hedge against ether’s volatility without directly purchasing the cryptocurrency.
Michael L. Sapir, CEO of ProShares, highlighted the importance of these ETFs, noting their capacity to alleviate the complexities and high costs typically associated with obtaining leveraged or inverse crypto exposures. This strategic move is tailored to meet the evolving needs of investors in a market environment characterized by rapid changes and significant price fluctuations.
ProShares’ Pioneering Role in Crypto-Linked ETFs
Since launching the first U.S. bitcoin-linked ETF in October 2021, ProShares has continued to shape the landscape of cryptocurrency investment products. The firm has since introduced a variety of crypto-linked ETFs, including the first U.S. short bitcoin-linked ETF and the first ETF targeting the performance of ether.
These products do not invest directly in cryptocurrencies but instead aim to replicate the performance of crypto through futures contracts and other derivative instruments. This method offers investors a regulated and familiar way to participate in the potential growth of digital assets.
ProShares’ innovation in ETFs extends beyond cryptocurrency. Since its inception in 2006, the firm has been at the forefront of the ETF industry, now managing over $70 billion across a diverse range of ETF offerings. These include 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 address specific investor needs, providing strategic and tactical opportunities to manage investment risks and enhance returns.
This expansion into ether-based products by ProShares reflects a broader industry trend towards incorporating more diverse and sophisticated financial instruments related to digital assets.
As the cryptocurrency market matures, the demand for products that can provide enhanced exposure to digital assets—while mitigating the risks associated with direct investments in cryptocurrencies—continues to grow. ProShares’ latest ETFs are poised to be a significant part of this evolution, offering investors new ways to leverage the volatile dynamics of the crypto markets for potential gains.
As such, ETHT and ETHD are likely to attract a wide range of investors, from those looking to diversify their portfolios to active traders seeking to capitalize on the price movements of ether.
