BETHESDA, Md.--(BUSINESS WIRE)--ProShares, the global leader in crypto-linked ETFs, announces the launch on Monday, October 2, of the ProShares Ether Strategy ETF (EETH), the first ETF to target the performance of the cryptocurrency ether. At the same time, ProShares is also launching two ETFs that each look to provide performance that corresponds to a blended return of bitcoin and ether.
EETH will be the first exchange-traded fund to seek results that correspond to the performance of ether. Ether, the native currency of the Ethereum platform, is the second largest cryptocurrency.
“We have seen substantial demand from investors for access to the performance of cryptocurrencies through ETFs with the success of our bitcoin-linked ETF, BITO, which was launched almost two years ago and has become the largest crypto-linked ETF in the world,” said ProShares’ CEO Michael L. Sapir. “Now, with the launch of EETH, investors who want to target the performance of bitcoin or ether through an ETF, with all of the structure’s benefits, will not need to wait.”
ProShares is also launching two ETFs that each offer investors exposure to the returns of both bitcoin and ether, the two cryptocurrencies that make up the dominant share of the cryptocurrency market. ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE) rebalances monthly to a 50/50 weighting between the two cryptocurrencies. ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) rebalances monthly based on the market capitalization of bitcoin and ether.
“We believe that BETE and BETH are groundbreaking in that they offer investors the opportunity to target the performance of the two leading cryptocurrencies in their brokerage accounts through one transaction with a single ticker,” said Sapir. “We are offering two weightings depending on an investor’s desired exposure.”
All three of these ETFs will be available to investors through brokerage accounts with no need for a crypto custodian, exchange account or wallet. These ETFs will be listed on the New York Stock Exchange.
"We think that many investors who are interested in cryptocurrencies but are concerned about custody risks, or who are challenged by the learning curve and complexities required to buy them directly, will be attracted to our crypto-linked ETFs,” Sapir added.
EETH, BETE and BETH expand ProShares’ line-up of crypto-linked ETFs. In 2021, ProShares launched BITO, the first U.S. bitcoin-linked ETF which has gathered more than $2 billion of net inflows. In 2022, ProShares introduced BITI, the first U.S. short bitcoin-linked ETF.
All five ETFs invest primarily in ether futures, bitcoin futures, or in both. These futures trade on a regulated exchange and historically have had a .99 correlation to their respective cryptocurrencies, according to ProShares’ research. The Funds do not invest directly in bitcoin or ether.
ProShares has been at the forefront of the ETF revolution since 2006. ProShares offers one of the largest lineups of ETFs and, along with its affiliates, now manages over $60 billion in assets. The company is a leader in strategies such as crypto, dividend growth, and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.
Investing involves risk, including the possible loss of principal. There is no guarantee any ProShares ETF will achieve its investment objective.
These ETFs invest in bitcoin and ether futures contracts and do not invest directly in bitcoin or ether. Bitcoin and bitcoin futures, and ether and ether futures, are each a relatively new asset class, and the market for bitcoin and ether is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures, and ether and ether futures, are subject to unique and substantial risks, such as rapid price swings and lack of liquidity, including as a result of changes in the supply of and demand for bitcoin and bitcoin futures contracts, and ether and ether futures contracts. Bitcoin and ether are largely unregulated and may be more susceptible to fraud and manipulation than more regulated investments. The value of an investment in these funds could decline significantly and without warning, including to zero.
These ETFs are actively managed. The costs associated with rolling (buying and selling) futures and the impact of margin requirements, collateral requirements and other limits may have a negative impact on performance and prevent each Fund from achieving its objective. The price and performance of bitcoin futures and ether futures should be expected to differ from the current ‘‘spot’’ prices of bitcoin and ether (the prices of bitcoin and ether that can be purchased immediately). These differences could be significant.
These ETFs are non-diversified and are subject to risks associated with the use of futures contracts, leverage, and market price variance, all of which can increase volatility and decrease performance. Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.
Carefully consider the investment objectives, risks, charges, and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. Obtain them from your financial professional or visit ProShares.com.
ProShares are distributed by SEI Investments Distribution Co. ("SIDCO"), which is not affiliated with the funds' advisor or sponsor. SIDCO is located at 1 Freedom Valley Drive, Oaks, PA 19456.