ETHT will target 2x daily ether returns, while ETHD will target -2x daily ether returns and will be the first ETF of its kind in the U.S.
ProShares, a premier provider of ETFs, announced today the upcoming launch of two pioneering ether-linked ETFs. The ProShares Ultra Ether ETF (ETHT) will target 2x daily ether returns, while the ProShares UltraShort Ether ETF (ETHD) will be the first U.S.-listed product to target -2x daily ether returns. Both ETFs are expected to list on the New York Stock Exchange this Friday, June 7.
“We are excited to introduce ETHT and ETHD. These new ETFs are designed to address the challenge of acquiring leveraged or short exposure to ether, which can be onerous and expensive,” said ProShares CEO Michael L. Sapir. “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.”
ETHT and ETHD are designed for investors who want to target leveraged or short ether exposure with the accessibility, convenience and efficiency of an ETF.
ProShares is the world’s leader in geared ETF investing and a pioneer of crypto-linked ETFs, with the largest number of listings available in the U.S. The firm broke ground by offering the first U.S. bitcoin-linked ETF (BITO) in October 2021. Since then, ProShares has also launched the first U.S. short bitcoin-linked ETF (BITI), the first U.S. ETF that targets the performance of ether (EETH) and the first short ether-linked ETF (SETH), among other innovative crypto-linked ETF solutions. The preceding ETFs, including ETHT and ETHD, do not invest directly in cryptocurrencies.
Each fund's registration statement is not yet effective and may be changed. Shares of the funds may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
About ProShares
ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with over $70 billion in assets. The company is a leader in strategies such as crypto-linked, dividend growth, interest rate hedged bond 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.
Disclosures
This information is not meant to be investment advice.
Investing involves risk, including the possible loss of principal. There is no guarantee that these funds will achieve their investment objective.
Geared ProShares ETFs seek daily investment results that correspond, before fees and expenses, to a multiple of (e.g., 2x or -2x) the daily performance of its underlying benchmark (the “Daily Target”). While the funds have a daily investment objective, you may hold fund shares for longer than one day if you believe it is consistent with your goals and risk tolerance. For any holding period other than a day, your return may be higher or lower than the Daily Target. These differences may be significant. Smaller index gains/losses and higher index volatility contribute to returns worse than the Daily Target. Larger index gains/losses and lower index volatility contribute to returns better than the Daily Target. The more extreme these factors and the longer your holding period while these factors apply, the more your return will tend to deviate. Investors should consider periodically monitoring their geared fund investments in light of their goals and risk tolerance.
These ETFs invest in derivatives (e.g., swap agreements, futures contracts and similar instruments) that provide indirect exposure to ether and do not invest directly in ether. Investors seeking exposure to ether directly should consider an investment other than these ETFs. Ether is a relatively new asset class, and the market for ether is subject to rapid changes and uncertainty. Ether is 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 ether, statements by influencers and the media, and other factors. Ether is largely unregulated and may be more susceptible to fraud and manipulation than more regulated investments. Leveraged exposure to ether will increase volatility. The value of an investment in these ETFs could decline significantly and without warning, including to zero. These ETFs may not be suitable for all investors.
Each Fund’s ability to obtain leveraged/inverse exposure is limited at each tax quarter-end (e.g., the last market days of January, April, July, and October) by each Fund’s intention to qualify for certain tax treatment. As a result, each Fund will not be able to obtain leveraged/inverse exposure consistent with its Daily Target and will not meet its investment objective on those days. The amount of leveraged/inverse exposure each Fund seeks to have on these dates may be significantly lower than its Daily Target.
These ProShares ETFs are non-diversified and entail certain risks, including risks associated with the use of derivatives (e.g., swap agreements, futures contracts and similar instruments), counterparty risk, imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. 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 the funds from achieving their objective. The price and performance of derivatives based on the price of ether should be expected to differ from the current ‘‘spot’’ prices of ether (the prices of ether that can be purchased immediately). These differences could be significant. These ETFs are new and may have a limited number of market makers. There can be no assurance the funds will be successful or that an active market for shares will develop. 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 the ETF’s preliminary prospectus. Read them carefully before investing.
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.
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