A new cryptocurrency just joined the exchange-traded funds space.
Ether made its ETF debut with the release of six different futures products on Monday.
ProShares Advisors is behind three of the new ETFs: Ether Strategy ETF (EETH), Bitcoin & Ether Equal Weight Strategy ETF (BETE) and the Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). The ETFs do not directly invest in the cryptocurrencies but track their futures contracts.
“What we know is the futures ETFs are here today and what’s important about that is that the regulated futures market resolves a lot of the challenges as the spot market is maturing,” Simeon Hyman, ProShares’ global investment strategist, told CNBC’s “ETF Edge” on Monday.
The regulated futures market in an ETF is a great solution, he added.
The U.S. Securities and Exchange Commission is deciding whether to approve a potential spot bitcoin ETF after a judge ruled that its argument against converting a Grayscale Bitcoin Trust (GBTC) into an ETF fell short. The SEC had repeatedly rejected similar products over the past few years.
ProShares also manages the Bitcoin Strategy ETF (BITO), which is the largest bitcoin futures ETF on the market. It follows bitcoin futures and is up more than 37% year to date.
“We have a full suite of crypto solutions,” said Hyman. “We’re the largest crypto ETF provider.”
The BETE and BETH ETFs give exposure to two of the largest cryptocurrencies, so it made a lot of sense to launch the combined products, the ProShares strategist said.
“It’s rare when you get a new asset class to enter into the ETF lexicon,” said Todd Sohn, Strategas Securities ETF and technical strategist, in the same interview. He understands why ETF issuers are jumping on crypto as the next opportunity.
“We’ll see how the asset class performs, but this is a new area for everyone to get involved into, so I think that’s why you’re seeing such popularity with all these releases,” Sohn said.
Disclaimer
Source link: https://www.cnbc.com/2023/10/06/the-firm-behind-the-largest-crypto-etf-just-debuted-ether-futures-etfs.html