ProShares applies for SEC approval to list Ethereum ETF on NYSE
ProShares, a leading provider of exchange-traded funds (ETFs), has submitted a request to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).
In the filing with the United States Securities Exchange Commission (SEC), ProShares Ethereum ETF will utilize Coinbase Custody Trust Company for ETH custody. The asset manager clarified that neither the company nor its affiliates will partake in Ethereum staking activities.
Crypto.news revealed that various potential spot Ethereum ETF issuers have updated their 19b-4 and S-1 filings to eliminate staking components. This adjustment aims to address the SEC’s stance on staking for spot Ethereum ETFs.
However, the approval of these ETFs without staking capabilities may deter investors seeking additional yield from staking rewards. Typically, individuals who purchase, hold, and stake ETH can earn staking rewards, which results in extra yield. By excluding the staking feature, spot Ethereum ETFs will not provide these supplementary benefits to investors.
The SEC has a timeframe of 45 days, extendable to 90 days, from the publication date of the notice to respond to the filing. Given that ProShares’ spot ETH ETF was filed on June 6, 2024, approval could potentially be granted by late July 2024.
This proposal comes after ProShares recently introduced two Ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), targeting 2x and -2x daily ETH returns, respectively. Both ETFs are scheduled to be listed on the NYSE on Friday, June 7.
ProShares gained recognition for launching the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts. Unlike some major asset management firms like Blackrock, Grayscale, and Fidelity, ProShares has not pursued a spot Bitcoin (BTC) ETF.
It is important to highlight that the approval of spot Ethereum ETFs requires approval for both filings to be officially traded in the market. The approval granted in May only pertained to the 19b-4.
Industry analysts predict that the final approval for these ETFs could materialize in July 2024. These products are anticipated to offer investors new levels of flexibility and strategy, facilitating more precise navigation of the volatile crypto market.
Meanwhile, the Bitcoin ETF has attracted $2.4 billion in investments after witnessing consecutive inflows for the last 15 days, as reported by Senior Bloomberg ETF analyst Eric Balchunas in a recent post on X.
