🌎 ProShares Proposes Spot Ethereum ETF on NYSE Amid SEC Review

ProShares, a leading issuer of exchange-traded funds (ETFs), has submitted a proposal to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).

According to a filing with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will use Coinbase Custody Trust Company for ETH custody. The asset manager mentioned that the firm and its associated parties will not engage in activities related to Ethereum staking.

Potential spot Ethereum ETF issuers have updated their 19b-4 and S-1 filings to exclude staking components. These revisions aim to address the SEC’s stance on staking for spot Ethereum ETFs. However, the approval of these ETFs without staking capabilities may discourage investors seeking additional yield from staking rewards.

Typically, individuals who buy, hold, and stake ETH can earn staking rewards, resulting in extra yield. Excluding the staking feature means spot Ethereum ETFs will not offer these additional benefits to investors.

The SEC has 45 days, extendable to 90 days, from the notice publication date to respond to the filing. Since ProShares’ spot ETH ETF was filed on June 6, 2024, approval could be expected by late July 2024.

This proposal comes after ProShares’ recent introduction of 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 set to be listed on the NYSE on Friday, June 7.

ProShares is known for launching the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts. However, ProShares has not pursued a spot Bitcoin (BTC) ETF, unlike some major asset management firms.

It is essential to note that the spot Ethereum ETFs require approval for both filings to be officially traded in the market. The approval in May was solely for the 19b-4. Analysts anticipate that the final approval for these ETFs might occur in July 2024.

These products are expected to provide investors with new levels of flexibility and strategy, enabling more precise navigation of the volatile crypto market.

Meanwhile, the Bitcoin ETF has attracted $2.4 billion after noting consecutive inflows for the last 15 days.