As a researcher with a background in financial markets and experience in the crypto space, I find ProShares’ latest proposal to list a spot Ethereum ETF on the NYSE intriguing. The potential approval could pave the way for more investor participation in the Ethereum market and provide additional flexibility for those seeking exposure to the asset without engaging in staking activities.
As a researcher, I’d put it this way: I’ve come across an intriguing development regarding ProShares and their plan to introduce an Ethereum (ETH) exchange-traded fund (ETF) on the New York Stock Exchange (NYSE). The proposal, which they have recently filed, aims to allow trading of spot Ethereum ETF shares on this major stock exchange.
As a researcher examining SEC filings, I’ve discovered that ProShares Ethereum ETF intends to employ Coinbase Custody Trust Company for safekeeping Ethereum (ETH) assets.
The asset manager made it clear that the company and its affiliates would abstain from involvement in Ethereum staking activities.
As an analyst, I’ve come across a noteworthy development in the world of cryptocurrency news. According to Crypto.news, prospective issuers of Ethereum Exchange-Traded Funds (ETFs) have made adjustments to their 19b-4 and S-1 applications to exclude staking as a component. These modifications are intended to align with the Securities and Exchange Commission’s (SEC) stance on staking for spot Ethereum ETFs.
Instead of approving these ETFs without the ability to stake, it might deter investors looking for extra returns through staking rewards.
Normally, people who purchase, keep, and validate Ethereum through staking can gain reward payments, leading to enhanced income. However, Ethereum Spot ETFs without staking capabilities won’t provide these extra incentives for investors.
As an analyst, I would express it this way: The SEC has a deadline of 45 days, with the possibility of extending it to 90 days, from the date of publication of ProShares’ spot ETH ETF notice for a response. Given that the filing was submitted on June 6, 2024, an approval decision could be anticipated around late July 2024.
As an analyst, I would express it this way: I’m observing that ProShares has recently launched two Exchange-Traded Funds (ETFs) linked to Ethereum: the ProShares Ultra Ether ETF (ETHT) and the ProShares UltraShort Ether ETF (ETHD). These funds aim to deliver 2x and -2x daily returns, respectively, on Ethereum’s price movements.
Both ETFs are set to be listed on the NYSE on Friday, June 7.
ProShares is widely recognized for having introduced the first Bitcoin-linked exchange-traded fund (ETF) in 2021, specifically the Bitcoin Strategy ETF (BITO). This ETF invests in Bitcoin futures contracts. However, unlike some prominent financial institutions such as Blackrock, Grayscale, and Fidelity, ProShares has not yet sought to launch a spot Bitcoin ETF that directly holds the digital currency itself.
Important to remember: For Ethereum ETFs to start trading in the market, both filing approvals are necessary. The first approval in May was granted for the 19b-4 process only.
Analysts anticipate that the final approval for these ETFs might occur in July 2024.
Investors can look forward to enhanced flexibility and strategic options with these products, allowing for finer control as they navigate the unpredictable crypto market.
Over the past 15 days, there have been successive inflows into the Bitcoin ETF, totaling approximately $2.4 billion, according to senior ETF analyst Eric Balchunas at Bloomberg.
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2024-06-07 13:51