ProShares, a prominent issuer of exchange-traded funds (ETFs), has submitted a proposal to the New York Stock Exchange (NYSE) to list and trade spot Ethereum (ETH) ETF shares. This initiative underscores ProShares' dedication to broadening its range of digital asset products, offering investors a regulated and secure avenue to access Ethereum exposure.
Staking Guidelines for ProShares Ethereum ETF Are Explicit in SEC Filings
Coinbase Custody Trust Company will handle the ETH custody for the ProShares Ethereum ETF. ProShares stressed in its submission, as did other asset managers, that it and its linked parties will not partake in Ethereum staking operations.
Staking has been removed from the 19b-4 and S-1 filings by prospective spot Ethereum ETF issuers. With these moves, the US Securities and Exchange Commission (SEC) hopes to make its position on staking for spot Ethereum ETFs more clear.
But allowing these ETFs without include staking features could hurt investors who want to increase their yield on staking incentives. Staking rewards are available to ETH holders who buy, keep, and stake the cryptocurrency. This can generate additional return.
ProShares submitted a proposal to the SEC on June 6, 2024, to list and trade spot Ethereum (ETH) ETF shares on the NYSE. The SEC has up to 45 days, extendable to 90 days, from the publication date to respond, potentially leading to approval by late July 2024.
This proposal comes after ProShares announced two Ethereum-linked ETFs, ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), targeting 2x and -2x daily ETH returns, respectively. These ETFs are expected to debut on the NYSE this Friday.
While ProShares pioneered the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts, the company has not pursued a spot Bitcoin (BTC) ETF, unlike some other major asset management firms.
The recent proposal reflects a broader trend noted by Matteo Greco, a Research Analyst at Fineqia, who observed growing interest and commitment from traditional finance players in digital assets. Greco emphasized the global demand among traditional finance investors to diversify portfolios by increasing exposure to digital assets, citing the approval of spot Bitcoin ETFs in the US earlier this year, along with similar launches for BTC and ETH in Hong Kong and spot Bitcoin ETF trading in Australia.
June 2024, Cryptoniteuae