ProShares is set to expand its line-up of crypto-linked investment products with a new ETF that is expected to be among the first in the US to offer inverse exposure to ether, the world’s second-largest crypto asset.

The ProShares Short Ether Strategy ETF (SETH US) is expected to list on NYSE Arca on 2 November.

The ProShares Short Ether Strategy ETF (SETH US) is expected to list on NYSE Arca on 2 November, less than a month after the launch of the first futures-based long ether ETFs.

SETH will deliver the inverse (-100%) daily return of the S&P CME Ether Futures Index, a reference for the performance of front-month ether futures contracts traded on CME Group’s regulated trading platform.

The index rolls its exposure from the expiring contract to the following month’s contract over a five-day period each month.

SETH will be accessible through conventional brokerage accounts, offering a more efficient way to bet against ether by sidestepping the often significant costs and complexities associated with shorting the asset directly.

As the crypto market continues its rapid expansion and mainstream adoption, offerings like SETH represent another significant step in affording investors a broader and more nuanced set of investment tools.

As is common with all inverse and leveraged ETFs, however, SETH is not typically suitable for retail investors who may lack an understanding of the inherent risks. These funds are ill-suited for a buy-and-hold strategy as they may erode in value over extended periods, particularly in volatile and range-bound markets.

SETH will come with an expense ratio of 0.95%, in line with ProShares’ other futures-based crypto ETFs which include long exposure to bitcoin or ether, short exposure to bitcoin, as well as funds with combined allocations to both crypto assets, weighted either equally or by market cap.