ProShares requests SEC approval for Ethereum ETF to be listed on NYSE
ProShares, a well-known provider of exchange-traded funds (ETFs), has submitted a proposal to list and trade shares of spot Ethereum (ETH) ETF on the New York Stock Exchange (NYSE).
As per the filing with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will utilize Coinbase Custody Trust Company for ETH custody. The company clarified that it and its affiliates will not partake in any activities related to Ethereum staking.
Reports from Crypto.news indicate that potential issuers of spot Ethereum ETFs have made changes to their 19b-4 and S-1 filings to exclude staking components. These adjustments are aimed at addressing the SEC’s stance on staking for spot Ethereum ETFs.
However, the approval of these ETFs without staking features may deter investors who are looking to earn additional yield from staking rewards. By excluding the staking aspect, spot Ethereum ETFs will not provide these extra benefits to investors.
The SEC has a 45-day period, extendable to 90 days, from the date of publication of the notice to respond to the filing. With ProShares’ spot ETH ETF filing 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.
Unlike some major asset management firms like Blackrock, Grayscale, and Fidelity, ProShares has not pursued a spot Bitcoin (BTC) ETF, despite being known for launching the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts.
It is important to note that approval for both filings is required for spot Ethereum ETFs to be officially traded in the market. The approval granted in May was specifically for the 19b-4.
Analysts predict that the final approval for these ETFs could come in July 2024. These products are anticipated to offer investors new levels of flexibility and strategy, allowing for more precise maneuvering in the volatile crypto market.
Meanwhile, the Bitcoin ETF has seen significant inflows, attracting $2.4 billion after experiencing consecutive inflows for the past 15 days, as highlighted by Senior Bloomberg ETF analyst Eric Balchunas in a recent post on X.
