ProfessionalShares just lately introduced its new exchange-traded fund (ETF), the ProfessionalShares Short Ether Strategy. This ETF permits traders to undertake a bearish perspective on ether, the second-largest cryptocurrency globally. If the Standard & Poor’s CME Ether Futures Index drops by 1%, the ETF goals to return an equal of 1%. Moreover, the fund’s strategy is tied to futures contracts on ether, diverging from the spot worth of the token.
Additionally, the cryptocurrency neighborhood awaits the U.S. Securities and Exchange Commission’s (SEC) resolution on spot Bitcoin ETFs. However, this isn’t the corporate’s first foray into ether ETFs. ProfessionalShares launched three out of 9 new ether ETFs in early October. Among them, the ProfessionalShares Ether Strategy ETF solely focuses on ether, whereas the remaining two supply mixed publicity to each ether and bitcoin.
ProfessionalShares CEO Defends New Ether ETF
Interestingly, the reception to these ether ETFs has been comparatively lukewarm. While the ProfessionalShares Bitcoin Strategy ETF gathered property price about $1 billion inside its preliminary days, essentially the most substantial ether futures ETF managed to accrue lower than $10 million. Consequently, this stark distinction in efficiency raises eyebrows within the monetary neighborhood.
Michael Sapir, ProfessionalShares CEO, elucidated the rationale behind the inverse ether ETF. He talked about that this progressive ETF goals “to address the challenge of acquiring short exposure to ether,” which is usually cumbersome and dear. Additionally, ProfessionalShares has one other feather in its cap – the ProfessionalShares Short Bitcoin Strategy. This fund boasts about $74 million in property.
VanEck Revamps Bitcoin ETF Application Strategy
Roxana Islam from VettaFi highlighted the strategic transfer by ProfessionalShares. She emphasised that the inverse technique is a distinct segment that any upcoming spot product will solely partially overshadow. Significantly, the BTC ETF panorama can be experiencing its justifiable share of exercise. Notably, VanEck, a outstanding participant within the cryptocurrency enviornment, just lately revised its Bitcoin ETF application with the SEC. This modification detailed the agency’s intentions to again the BTC ETF with funds rooted in bodily BTC.
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