SEC considers application of ProShares spot Ether ETF

About three weeks after approving eight investment vehicles, the U.S. Securities and Exchange Commission (SEC) added asset management company ProShares’ application for a spot ether (ETH) exchange-traded fund.

The SEC said in a filing on June 10 that it proposed rule changes that would allow the New York Stock Exchange (NYSE) Arca to list and trade shares of the ProShares Ethereum ETF. The commission said it is seeking public comment on the ETF application for 21 days after publication in the Federal Register, giving the SEC 45 days to approve, disapprove or extend its decision.

On May 23, the SEC officially approved the 19b-4 filings of eight asset management companies that applied to list and trade spot Ether ETFs on U.S. exchanges for the first time. Final approval requires the SEC to sign off on the S-1 registration statement for the spot Ether ETF before it officially begins trading. The process could take several months, but some experts expect it to be completed by July.

“Instinct initially said the ProShares ETF wouldn’t launch on day one with the other ETFs, but who knows,” ETF analyst James Seyffart said in a June 10 post. “This is fun.”

Related: Why Ethereum ETF’s First Day Inflows Are Not the Same as Bitcoin — Fireblocks MD

In October 2023, ProShares was one of the first asset managers to receive approval from the SEC to list and trade shares of spot investment vehicles related to ETH futures. The company also offers a Bitcoin strategy ETF on NYSE Arca under the name BITO.

It is unclear whether the SEC will approve ProShares’ proposed spot Ether ETF following its initial approval. The document merely suggested that the committee would consider the application.

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