ProShares Submits Application to SEC for Ethereum ETF Listing on NYSE

ProShares Submits Process to Introduce Ethereum ETF on NYSE, Files with SEC

Crypto News– ProShares, a leading American financial services firm, has officially filed with the United States Securities and Exchange Commission (SEC) to list its forthcoming spot Ethereum exchange-traded funds (ETFs) on the prestigious New York Stock Exchange (NYSE).

The company recently submitted its form 19b-4 to the SEC, signaling its intention to have the new investment products traded on the stock exchange upon approval.

This move follows the SEC’s authorization on May 23, 2024, of the initial phase of ETF applications from several prominent entities such as VanEck, BlackRock, Grayscale, Franklin Templeton, Bitwise, and Invesco Galaxy. These applications aim to directly mirror the value of Ethereum (ETH), the second-largest cryptocurrency by market capitalization.

While awaiting final regulatory approval, ProShares has selected Coinbase Custody to act as the custodian for its spot Ethereum ETF once it receives certification from the SEC.

ProShares Drops Ethereum Staking Component from ETF Plans

In the recent filing, ProShares specified that the New York Stock Exchange (NYSE) will facilitate the trading of the Ethereum ETFs, with Coinbase assuming the role of custodian for the assets. Moreover, ProShares made it clear that it will abstain from engaging in any staking activities once the Ethereum ETFs are launched.

Prior to the recent approval, the SEC mandated applicants to modify their 19b-4 and S-1 forms to eliminate Ethereum staking features from the investment product.

The regulatory body has previously shown disapproval of staking, taking legal action against firms like Kraken and Coinbase for offering unregistered staking services to U.S. customers.

In compliance with the SEC’s directive, ProShares removed the Ethereum staking component from its 19b-4 filing. Consequently, investors purchasing the Ethereum spot ETFs will not have the opportunity to earn additional rewards from their holdings, unlike direct Ethereum investors.

ProShares Introduces Fresh Ethereum ETF Offerings

While awaiting the SEC’s decision on its application, ProShares rolled out two new Ethereum-linked futures ETFs on June 4.

Dubbed the ProShares Ultra Ether ETF (ETHT) and the ProShares UltraShort Ether ETF (ETHD), these products commenced trading on Friday, June 7, on the NYSE.

Designed to target 2x daily Ether returns and -2x daily Ether returns, respectively, these funds cater to investors seeking amplified or inverse exposure to Ether.

CEO Michael L. Sapir expressed that these new offerings provide investors with the chance to pursue magnified returns on Ether or to manage exposure with reduced capital at risk.

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