ProShares, a leading issuer of exchange-traded funds (ETFs), has officially filed a proposal with the United States Securities Exchange Commission (SEC) to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).

According to the filing, the proposed ProShares Ethereum ETF will utilize Coinbase Custody Trust Company for ETH custody. Notably, the asset manager has clarified that the firm and its associated entities will abstain from engaging in Ethereum staking activities.

Recent reports from Crypto.news indicate that potential issuers of spot Ethereum ETFs have revised their 19b-4 and S-1 filings to exclude staking components. These modifications aim to align with the SEC’s stance on staking for spot Ethereum ETFs. However, the absence of staking features in these ETFs might deter investors who typically seek the additional yield provided by staking rewards. Staking ETH generally allows holders to earn rewards, thereby generating extra income. By excluding this feature, the spot Ethereum ETFs will not offer these potential benefits.

The SEC has a 45-day window, which can be extended to 90 days, from the notice publication date to respond to the filing. Given that ProShares filed its spot ETH ETF proposal on June 6, 2024, a decision is anticipated by late July 2024.

This proposal follows ProShares' recent launch of two Ethereum-linked ETFs: the ProShares Ultra Ether ETF (ETHT) and the ProShares UltraShort Ether ETF (ETHD), designed to target 2x and -2x daily ETH returns, respectively. Both ETFs are slated for listing on the NYSE on Friday, June 7.

ProShares is well-known for launching the first Bitcoin-linked ETF in 2021, the Bitcoin Strategy ETF (BITO), which invests in futures contracts. Unlike some major asset management firms like BlackRock, Grayscale, and Fidelity, ProShares has not pursued a spot Bitcoin (BTC) ETF.

It is essential to note that the approval of spot Ethereum ETFs requires validation of both the 19b-4 and S-1 filings to be officially traded. The approval in May was specifically for the 19b-4 filing. Analysts expect that the final approval for these ETFs might occur in July 2024.

These new ETF products are anticipated to offer investors enhanced flexibility and strategic options, facilitating more precise navigation of the volatile crypto market. Meanwhile, the Bitcoin ETF has accumulated $2.4 billion following consistent inflows over the past 15 days, according to a recent post by Senior Bloomberg ETF analyst Eric Balchunas on X.

This development signifies a pivotal step in the ongoing integration of cryptocurrencies into mainstream financial markets, potentially opening new avenues for investor participation and market dynamics.