ProShares launched two new Ethereum-linked futures ETFs on June 4, pending an enforcement decision from the SEC.
ProShares, an American financial services company, has applied to the Securities and Exchange Commission (SEC) to list its soon-to-be-listed Ethereum exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).
ProShares recently filed Form 19b-4 with the SEC, seeking approval to trade the new investment vehicle on the stock exchange when trading begins.
On May 23, 2024, the SEC opened the first round of applications for an ETF filed by VanEck, BlackRock, Grayscale, Franklin Templeton, Bitwise, Invesco Galaxy, and others, with the goal of directly tracking the value of the second-largest cryptocurrency, Ethereum (ETH). Approved. Digital assets in the industry.
Pending final approval from the SEC, ProShares has selected Coinbase Custody to serve as custodian for the spot Ethereum ETF once the assets receive certification from the financial regulator.
ProShares removes Ethereum staking feature from ETFs
According to the filing, NYSE will serve as a product trading platform and Coinbase will act as asset custodian. ProShares also said in the filing that it will not engage in any staking activity when the Ethereum ETF begins trading.
Prior to the recent approval, the SEC required applicants to amend their Forms 19b-4 and S-1 to remove Ethereum’s staking feature from their investment products.
Financial regulators have previously expressed their displeasure with staking, suing companies like Kraken and Coinbase for offering unregistered staking services to U.S. customers.
As required by the SEC, ProShares excluded the staking portion of Ethereum from its 19b-4 filing. This means that investors who acquire an Ethereum spot ETF will not be able to reap additional rewards from their holdings, unlike someone who invests directly in Ethereum.
The SEC is expected to make a decision on the application within 45 days from the date of filing, but this period may be extended by up to 90 days. This suggests feedback from regulators could arrive as early as July.
ProShares Launches New Ethereum ETF
ProShares launched two new Ethereum-linked futures ETFs on June 4, pending an enforcement decision from the SEC.
The products, ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), began trading on the NYSE on Friday, June 7, according to the announcement.
These funds are designed to target 2x daily Ether returns and -2x daily Ether returns, respectively.
Michael L. Sapir, the company’s CEO, said the new product offers investors the opportunity to expand their Ethereum returns or expose less capital to risk.
Investment products also allow investors to profit when Ether prices fall or to hedge their Ether exposure.
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