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ProShares filed an S-1 registration statement for its ethereum spot ETF on June 11confirming and expanding the functions of the various fund participants.
According to the filing, Coinbase Credit will act as the company's merchant credit lender, allowing it to borrow ethereum (eth) and cash for certain transactions that exceed its merchant balance.
Bank of New York Mellon will act as transfer agent, processing purchase and redemption orders and maintaining records of fund ownership.
The filing also details previously disclosed roles, including BNY Mellon's role as cash manager and custodian, Coinbase Custody's role as ethereum custodian, Coinbase Inc.'s role as lead execution agency, Delaware Trust Company's role as trustee and ProShare Capital Management's role as sponsor. .
The filing allows for changes to each role, including an initial two-year term for the BNY Mellon trustee role with annual renewals.
ProShares may also add or terminate eth custodians, cash custodians, and lead execution agents at any time. Additionally, Coinbase has the option to give up its cash custodian role.
Some applications from other companies allow comparable, but not identical, changes between participants.
S-1 follows rule change 19b-4
The SEC has recognized the rule change proposed by NYSE Arca on behalf of ProShares. If approved, the change will allow the exchange to list and trade shares of the fund.
The SEC has not yet approved the proposed rule change on the ProShares fund. Based on market projections, the decision is expected to take weeks or months. However, as of press time, there is no clear timeline for approvals and launch.
Bloomberg ETF analyst James Seyffart said the fund may not launch alongside competing eth spot ETFs, which began seeking approval at an earlier date.
The SEC approved the eight rule changes to competing ethereum spot ETF applications on May 23. It still has to approve each fund's corresponding S-1 filings, which will allow issuers to launch the funds.
