- ProShares has selected Coinbase Custody Trust Company as custodian, ensuring compliance with regulatory standards for ETF operations.
- Despite SEC’s quick filing update, market entry of ProShares’ Ethereum ETF may lag behind other similar products.
The SEC has updated its records to include the filing by ProShares for an Ethereum ETF, indicating its intention to list on the New York Stock Exchange (NYSE). This update is part of a procedural step essential for obtaining the necessary regulatory approval to proceed with the ETF listing.
Looks like ProShares entering spot eth ETF race…
Was always surprised they didn’t launch spot btc ETF. https://t.co/emra5j6rrz
— Nate Geraci (@NateGeraci) June 6, 2024
Details of the Filing
ProShares submitted the application under the 19b-4 form, a requirement for regulatory approval. They have selected Coinbase Custody Trust Company as the custodian, ensuring adherence to regulatory requirements and the safeguarding of investor assets.
Although the SEC updated its website swiftly, analyst James Seyffart from Bloomberg suggests that the actual launch of ProShares’ ETF might occur later than other similar financial products.
This suggests a cautious approach to entering the market, likely influenced by the complex regulatory framework that governs digital assets.
Wider Industry Developments
This application follows the SEC’s recent approval of eight other Ethereum ETFs from industry entities such as VanEck and BlackRock. These approvals are part of a trend where investment vehicles allow market participants to invest in digital assets without directly purchasing cryptocurrencies.
The SEC’s review period for such filings is up to 90 days from the date of application, potentially setting the stage for an approval as soon as July 2024.
ProShares’ Additional Ethereum Products
Alongside the spot ETF application, ProShares has launched two Ethereum-linked futures ETFs: the ProShares Ultra Ether ETF (ETHT) and the ProShares UltraShort Ether ETF (ETHD), which started trading on June 7, 2024.
SEC just added the ProShares' Ethereum ETF Filing to its website. (That is extremely quick) Instinct initially says this wont launch on day 1 with the other ETFs whenever that is but who knows. This is interesting. https://t.co/VU0bYo3Gjr pic.twitter.com/npZYnljBmY
— James Seyffart (@JSeyff) June 10, 2024
These products are designed to enable investors to speculate on the price movements of Ethereum through both long and short positions.
However, the proposed spot ETF will not include Ethereum staking capabilities, following SEC guidelines that exclude such features from ETFs. This restriction may influence investors interested in generating additional returns through staking.
Market Context
Currently, Ethereum is experiencing slight price fluctuations, trading between $3,646 and $3,719, with the latest recorded price at $3,671.
This represents a 0.73% decrease from its recent high, illustrating the volatile nature of the cryptocurrency market.
The ongoing developments and the SEC’s structured review process indicate a growing integration of cryptocurrency-based products within established financial systems, providing regulated investment opportunities in the digital asset space.
