While waiting for the SEC’s decision on its application, ProShares launched two new Ethereum-linked futures ETFs on June 4.
American financial services company ProShares has filed with the United States Securities and Exchange Commission (SEC) to list its upcoming spot Ethereum exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE).
ProShares recently submitted its form 19b-4 to the SEC, seeking approval to trade the new investment vehicles on the stock exchange when it starts trading.
Recall that on May 23, 2024, the SEC authorized the first stage of ETF applications filed by VanEck, BlackRock, Grayscale, Franklin Templeton, Bitwise, Invesco Galaxy among others aiming to directly track the value of Ethereum (ETH), the second-largest digital asset in the industry.
While awaiting final approval from the SEC, ProShares has chosen Coinbase Custody to serve as the custodian for its spot Ethereum ETF once the asset receives certification from the financial regulator.
ProShares Removes Ethereum Staking Features from ETF
According to the filing, the NYSE will serve as the trading platform for the products, while Coinbase will act as the custodian for the assets. Additionally, ProShares clarified in the filing that it will not participate in any staking activities when the Ethereum ETFs commence trading.
Before the recent approval, the SEC had required applicants to amend their 19b-4 and S-1 forms to remove the staking features of Ethereum from the investment product.
The financial regulator has previously expressed displeasure with staking, suing companies like Kraken and Coinbase for offering unregistered staking services to customers in the U.S.
In compliance to the SEC’s demand, ProShares excluded the staking part of Etheruem from its 19b-4 filing . This means that investors acquiring the Ethereum spot ETFs will not be able to earn additional rewards from their holdings, unlike those who invest directly in Ether.
The SEC is expected to make a decision regarding the application within 45 days from the submission date, although this period can be extended to 90 days. This suggests that feedback from the regulator could arrive as early as July.
ProShares Launches New Ethereum ETFs
While waiting for the SEC’s decision on its application, ProShares launched two new Ethereum-linked futures ETFs on June 4.
According to the announcement, the products named the ProShares Ultra Ether ETF (ETHT) and the ProShares UltraShort Ether ETF (ETHD) began trading on Friday, June 7, on the NYSE.
These funds are designed to target 2x daily Ether returns and -2x daily Ether returns, respectively.
The company’s CEO, Michael L. Sapir said that the new products offer investors the opportunity to pursue magnified Ether returns or to target a level of exposure with less capital at risk.
Additionally, the investment products allow investors to profit when the price of Ether drops or to hedge their Ether exposure.
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