SEC Considers ProShares' Spot Ether ETF Application

The United States Securities and Exchange Commission (SEC) has added a spot Ether (ETH) exchange-traded fund (ETF) application from asset manager ProShares. This move comes roughly three weeks after the commission approved similar applications from eight other investment firms.

In a filing dated June 10, the SEC announced that the New York Stock Exchange (NYSE) Arca had proposed a rule change to list and trade shares of the ProShares Ethereum ETF. The SEC is now soliciting public comments on this application for a 21-day period following its publication in the Federal Register. The commission will then have 45 days to approve, disapprove, or extend the decision timeline.

This follows the SEC’s May 23 approval of 19b-4 filings from eight asset management firms seeking to list and trade spot Ether ETFs on U.S. exchanges for the first time. These approvals are contingent on the SEC signing off on the S-1 registration statements for the spot Ether ETFs, a process expected to conclude by July according to some experts.

ETF analyst James Seyffart expressed uncertainty about the ProShares ETF’s launch timing in a June 10 tweet, speculating it might not debut simultaneously with other approved ETFs.

ProShares has a history with the SEC, having received approval in October 2023 to list and trade shares of an investment vehicle tied to ETH futures. The company also offers a Bitcoin Strategy ETF on NYSE Arca under the ticker BITO.

The potential approval of the ProShares spot Ether ETF could further invigorate the cryptocurrency market by increasing competition and providing investors with more options. The inclusion of multiple players in the Ether ETF space is expected to enhance market liquidity and accessibility, potentially attracting a broader range of investors and boosting overall market confidence.

As the SEC continues to review ProShares’ application, the cryptocurrency community remains watchful of the potential implications for the future of Ether ETFs and the broader digital asset market.