The commission approved 19b-4 filings from eight asset managers in May, but they won’t begin trading on U.S. exchanges until the SEC signs off on the S-1 registration statements.

SEC Considers ProShares Spot Ether ETF Application

Key Points:
- The SEC is evaluating a spot Ether ETF application from ProShares.
- NYSE Arca proposed a rule change to list and trade ProShares Ethereum ETF shares.
- The SEC is soliciting public comments on the application for 21 days, with a 45-day decision timeline.
- Previously, the SEC approved spot Ether ETF filings from eight firms, pending final registration statement approval.
- ProShares has a history of SEC approval for ETH futures and Bitcoin ETFs.

Overview

The U.S. Securities and Exchange Commission (SEC) has moved forward with considering a spot Ether (ETH) exchange-traded fund (ETF) application from ProShares. This follows a recent wave of approvals for similar ETFs, indicating increasing regulatory acceptance of these financial products.

Application Details

In a filing dated June 10, the SEC announced that NYSE Arca had proposed a rule change to permit the listing and trading of shares for the ProShares Ethereum ETF. The SEC will collect public comments on the application for 21 days post-publication in the Federal Register, followed by a 45-day window to approve, disapprove, or extend the decision timeline.

Recent Context

On May 23, the SEC approved 19b-4 filings from eight asset management firms to list and trade spot Ether ETFs on U.S. exchanges for the first time. These ETFs still require final SEC approval on S-1 registration statements before trading can commence, with some experts predicting this could happen by July.

Market Reaction and Implications

James Seyffart, an ETF analyst, highlighted the uncertainty regarding the launch timing of the ProShares ETF compared to the other approved ETFs, noting the fluid nature of the situation. ProShares, known for its Bitcoin Strategy ETF (BITO), also received early SEC approval for an ETH futures investment vehicle.

Conclusion

While the SEC's consideration of ProShares' spot Ether ETF is a significant step, the ultimate approval and launch timeline remains uncertain. The market is closely watching these developments, as the approval of such ETFs could influence broader acceptance and investment in digital assets.