ProShares applies to SEC for approval to list Ethereum ETF on NYSE
ProShares, a well-known 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).
As per the documentation filed with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will utilize Coinbase Custody Trust Company for ETH custody. The asset manager clarified that neither the company nor its affiliates will be involved in Ethereum staking activities.
Reports from Crypto.news reveal that potential issuers of spot Ethereum ETFs have made adjustments to their 19b-4 and S-1 filings to eliminate staking components. These modifications are aimed at addressing the SEC’s stance on staking for spot Ethereum ETFs.
However, the approval of these ETFs without staking capabilities may disappoint investors looking for additional yield from staking rewards. Typically, individuals who purchase, hold, and stake ETH can earn staking rewards, which provide an extra yield. By excluding the staking feature, spot Ethereum ETFs will not offer these added benefits to investors.
The SEC has a 45-day period, which can be extended to 90 days, from the date of publication to respond to the filing. Given that ProShares’ spot ETH ETF was filed on June 6, 2024, approval could be anticipated by late July 2024.
This move 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 approval for both filings is needed for spot Ethereum ETFs to officially trade in the market. The approval granted in May only pertained to the 19b-4.
Analysts speculate that final approval for these ETFs could come in July 2024. These products are expected to offer investors new levels of flexibility and strategy, allowing for more precise navigation of the volatile crypto market.
Meanwhile, the Bitcoin ETF has attracted $2.4 billion after experiencing consecutive inflows for the past 15 days, as reported by Senior Bloomberg ETF analyst Eric Balchunas in a recent X post.
