ProShares, a prominent player in the ETF market, has taken a significant step towards launching a spot Ethereum ETF by filing an S-1 registration statement. Despite the current market downturn, the company remains optimistic about the future of Ethereum.

Key Partnerships and Roles

The ETF will rely on several key partners to ensure its smooth operation. Coinbase Credit will provide ProShares with a trade credit line, allowing them to borrow Ethereum and cash for transactions that exceed their immediate trading balance. Bank of New York Mellon (BNY Mellon) will serve as the transfer agent, processing both purchases and redemption orders for the ETF. Additionally, BNY Mellon will act as administrator and cash custodian, while Coinbase Custody will handle the safekeeping of Ethereum assets. These roles can be adjusted over time, with the ETF able to add or remove custodians and switch prime execution agencies as needed.

Ethereum's Performance

Despite ProShares' enthusiasm, Ethereum's price has continued to decline, dipping below the $3,500 mark. However, the overall trend for Ethereum appears mostly positive, with the price moving upwards since May 19th, indicating a bullish trend. Analysis of Santiment's data reveals that Ethereum's network growth has also declined, suggesting that new addresses are losing interest in the cryptocurrency.

Overall, ProShares' move towards launching an Ethereum ETF is a significant step forward, despite the current market challenges. The company's partnerships and flexibility in roles will help ensure the ETF's success, and the potential for growth in Ethereum's price and network activity remains promising.