ProShares, a major player in the exchange-traded fund (ETF) market, has taken a step forward in expanding its cryptocurrency offerings. The company has filed a proposal to list a spot Ethereum (ETH) ETF on the New York Stock Exchange (NYSE). This move signifies ProShares’ commitment to providing investors with a secure and regulated way to gain exposure to Ethereum, the world’s second-largest cryptocurrency.
The ProShares Ethereum ETF will leverage Coinbase Custody Trust Company to safeguard the underlying ETH assets. Notably, the proposal emphasized that ProShares, or any of its affiliates, will not participate in Ethereum staking activities. This aligns with a recent trend where other asset managers have removed staking aspects from their ETF filings. The aim seems to be to gain clarity on the US Securities and Exchange Commission’s (SEC) stance on staking within the context of spot Ethereum ETFs.
While this omission ensures regulatory compliance, it might be seen as a disadvantage for some investors. Staking ETH allows holders to earn additional yield through rewards. Without this feature, spot Ethereum ETFs might not offer the same level of potential returns.
The SEC has a 45-day window, extendable to 90 days, to respond to the filing. Considering the June 6, 2024 filing date, a decision could be reached as early as late July 2024.
This proposal comes on the heels of ProShares’ announcement of two new Ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD). These ETFs target 2x and -2x daily returns on ETH, respectively, and are expected to begin trading on the NYSE this week.
Also Read: Can Spot ETFs Launch Ethereum To $22,000 By 2030? VanEck Makes A Bold Call On The DeFi Leader
It’s worth noting that ProShares launched the first-ever Bitcoin-linked ETF, the Bitcoin Strategy ETF (BITO), in 2021. However, unlike some competitors, ProShares hasn’t pursued a spot Bitcoin (BTC) ETF. This latest filing aligns with recent comments from Matteo Greco, a Research Analyst at Fineqia. Greco pointed toward the growing interest and involvement of traditional financial institutions in the digital asset space.
For investors seeking exposure to Ethereum through a regulated exchange-traded product, the potential approval of the ProShares ETF could be a significant development. However, it’s crucial to remember that both SEC filings need approval before the ETF can officially trade. While the 19b-4 filing received approval in May, analysts predict the final green light for the ETF itself could come in July 2024.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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