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ProfessionalShares lately introduced its new exchange-traded fund (ETF), the ProfessionalShares Short Ether Strategy. This ETF permits buyers 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 group awaits the U.S. Securities and Exchange Commission’s (SEC) determination 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 provide 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 belongings value about $1 billion inside its preliminary days, probably the most substantial ether futures ETF managed to accrue lower than $10 million. Consequently, this stark distinction in efficiency raises eyebrows within the monetary group.

Michael Sapir, ProfessionalShares CEO, elucidated the rationale behind the inverse ether ETF. He talked about that this modern ETF goals “to address the challenge of acquiring short exposure to ether,” which is usually cumbersome and expensive. Additionally, ProfessionalShares has one other feather in its cap – the ProfessionalShares Short Bitcoin Strategy. This fund boasts about $74 million in belongings.

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 also be experiencing its justifiable share of exercise. Notably, VanEck, a outstanding participant within the cryptocurrency enviornment, 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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Maxwell is a crypto-economic analyst and Blockchain fanatic, keen about serving to folks perceive the potential of decentralized expertise. I write extensively on matters equivalent to blockchain, cryptocurrency, tokens, and extra for a lot of publications. My aim is to unfold information about this revolutionary expertise and its implications for financial freedom and social good.

The introduced content material might embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty to your private monetary loss.