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ProShares, a prominent exchange-traded fund (ETF) issuer, has filed a proposal to list and trade ethereum (eth) spot ETF shares on the New York Stock Exchange (NYSE).
According to the presentation With the United States Securities Exchange Commission (SEC), the ProShares ethereum ETF will use Coinbase Custody Trust Company for custody of eth.
The asset manager noted that the company and its associated parties will not engage in activities related to ethereum staking.
crypto.news reported that potential ethereum ETF spot issuers have revised their 19b-4 and S-1 filings to exclude staking components. These reviews are intended to address the SEC's position on betting on ethereum spot ETFs.
However, approving these ETFs without staking capabilities may discourage investors looking for additional returns by staking rewards.
Typically, people who buy, hold, and stake eth can earn staking rewards, generating additional returns. Excluding the staking feature means that ethereum spot ETFs will not offer these additional benefits to investors.
The SEC has 45 days, extendable to 90 days, from the date of publication of the notice to respond to the filing. Since the ProShares eth spot ETF was filed on June 6, 2024, approval could be expected by the end of July 2024.
This proposal follows the recent one from ProShares introduction of two ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), with a daily eth performance target of 2x and -2x, respectively.
Both ETFs will be listed on the New York Stock Exchange 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 such as Blackrock, Grayscale, and Fidelity.
It is essential to note that ethereum spot ETFs require approval for both filings to be officially traded on the market. The approval in May was only for 19b-4.
Analysts predict that the final approval of these ETFs could occur in July 2024.
These products are expected to provide investors with new levels of flexibility and strategy, allowing for more precise navigation in the volatile cryptocurrency market.
Meanwhile, the bitcoin ETF has attracted $2.4 billion after seeing consecutive inflows over the past 15 days, as Bloomberg Senior ETF Analyst Eric Balchunas reported in a recent x post.
