ProShares, a leading issuer of exchange-traded funds (ETFs), has filed a proposal to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).
According to the filing with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will use Coinbase Custody Trust Company for storing ETH.
The asset manager stated that the firm and its associated parties will not participate in Ethereum staking activities.
However, the approval of these ETFs without staking features may deter investors who seek additional returns from staking rewards.
Typically, individuals who buy, hold, and stake ETH can earn staking rewards, leading to extra yield. Without the staking feature, spot Ethereum ETFs will not offer these additional benefits to investors.
The SEC has 45 days, extendable to 90 days, from the notice publication date to respond to the filing. Since ProShares’ spot ETH ETF was filed on June 6, 2024, approval could be expected by late July 2024.
This proposal follows ProShares’ recent introduction of two Ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), targeting 2x and -2x daily ETH returns, respectively.
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 major asset management firms such as Blackrock, Grayscale, and Fidelity.
It is important to note that the spot Ethereum ETFs require approval for both the 19b-4 and S-1 filings to be officially traded. The approval in May was solely for the 19b-4.
Analysts predict that the final approval for these ETFs might occur in July 2024.
These products are expected to provide investors with new levels of flexibility and strategy, enabling more precise navigation of the volatile crypto market.
Meanwhile, the Bitcoin ETF has attracted $2.4 billion after noting consecutive inflows for the last 15 days, as reported by Senior Bloomberg ETF analyst Eric Balchunas in a recent X post.
Summary Review: ProShares‘ application for a spot Ethereum ETF marks a significant step in broadening investment opportunities in the crypto market. If approved, this ETF could offer investors a new way to gain exposure to Ethereum, further integrating digital assets into mainstream financial products.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
