On Friday, ProShares rolled out two ETFs offering 2x leveraged and 2x inverse exposure to the performance of ether, respectively. The ProShares Ultra Ether ETF (ETHT ) and ProShares UltraShort Ether ETF (ETHD ).
ETHT has an expense ratio of 0.94%, while ETD charges 1.01%.
Both funds are tied to the performance of the Bloomberg Ethereum Index. ETHT doubles whatever the index returns on a given day, and ETHD provides the inverse of that.
“These new ETFs are designed to address the challenge of acquiring leveraged or short exposure to ether, which can be onerous and expensive,” said Michael Sapir, CEO of ProShares.
“ETHT offers investors the opportunity to pursue magnified ether returns or target a level of exposure with less money at risk. ETHD allows investors to seek profit when the price of ether drops or hedge their ether exposure,” he added.
Spot Ether ETFs Recently Approved
The launch occurs in the wake of the SEC’s approval of spot ether ETFs in May. The regulatory agency cleared ETFs from at least eight issuers to launch. However, it is not clear when they will begin trading.
ProShares has been among the forefront of the cryptocurrency ETF charge for some time. In October 2021, the issuer was the first to market with a bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO ), which accumulated its first $1 billion in assets at a record pace. The fund currently has $2.1 billion in assets under management.
ProShares also offers inverse and leveraged exposure to ether futures via the $106.6 million ProShares Ether Strategy ETF (EETH ) and the $6.9 million ProShares Short Ether Strategy ETF (SETH ), as well as a pair of ETFs that combine exposure to bitcoin and ether futures.
The firm has nearly 150 ETFs currently trading, with a total value of almost $71 billion.
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