- ProShares files to list spot Ethereum ETF shares on NYSE.
- ETH custody secured by Coinbase Custody Trust Company.
- SEC’s response to the filing is anticipated in late July 2024.
ProShares, a leading exchange-traded funds (ETFs) issuer, has filed a proposal to list and trade spot Ethereum (ETH) ETF shares under the New York Stock Exchange (NYSE).
This move reflects ProShares’ commitment to expanding its digital asset offerings, providing investors with a secure and regulated option to gain exposure to Ethereum.
SEC Filings Clarify Staking Policies for ProShares Ethereum ETF
The ProShares Ethereum ETF will use Coinbase Custody Trust Company for ETH custody. Like other asset managers’ filings, ProShares also emphasized that the firm or any affiliated parties will not engage in activities related to Ethereum staking.
BeInCrypto reported that potential spot Ethereum ETF issuers have updated their 19b-4 and S-1 filings to remove the staking aspects. These actions aim to clarify the US Securities and Exchange Commission’s (SEC) stance on staking for spot Ethereum ETFs.
However, approving these ETFs without incorporating staking capabilities could disadvantage investors interested in earning additional yield from staking rewards.
Those who purchase, hold, and stake ETH have the opportunity to receive staking rewards, which can result in extra yield.
By omitting the staking feature, spot Ethereum ETFs will be unable to provide additional benefits for investors.
The SEC has 45 days, extendable to 90 days, from the notice publication date to respond to the filing. Since ProShares filed on June 6, 2024, approval could come as early as late July 2024.
This proposal follows ProShares’ recent announcement of two Ethereum-linked ETFs, ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), which target 2x and -2x daily ETH returns, respectively. These ETFs are expected to be listed on the NYSE this Friday.
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 asset management giants.
This latest proposal aligns with recent comments from Matteo Greco, a Research Analyst at Fineqia. Greco highlighted the growing interest and commitment from traditional finance players in digital assets.
“These recent developments underscore the global demand among traditional finance investors to diversify their portfolios by increasing exposure to digital assets. Earlier this year, the approval of spot Bitcoin ETFs in the US paved the way, followed by similar product launches for BTC and ETH in Hong Kong. Additionally, news of spot Ethereum ETF approval in the US and spot Bitcoin ETF trading in Australia further highlights the industry’s momentum,” he told BeInCrypto.
However, it is important to note that these spot Ethereum ETFs need approval for both filings to trade in the market officially.
The approval in May was only for the 19b-4. Analysts predict that the final approval for these ETFs could occur sometime in July 2024.
