SEC Begins Review of ProShares’ Ethereum ETF Application

SEC Securities and Exchange Commission

The US Securities and Exchange Commission (SEC) has received an application for a spot Ethereum exchange-traded fund (ETF) from asset manager ProShares. This follows ProShares’ submission to list and trade spot Ethereum ETF shares on the New York Stock Exchange (NYSE) on June 6.

The SEC has acknowledged ProShares’ application for a spot Ethereum (ETH) ETF. The public can comment on the application for 21 days, with the SEC expected to make a decision by late July 2024. This acknowledgment by the SEC follows approvals granted to other issuers in May 2024.

SEC Reviewing ProShares’ Spot Ethereum ETF Application

In a filing on June 10, the SEC acknowledged NYSE Arca’s proposal for a rule change to facilitate the listing of ProShares’ spot Ethereum exchange-traded fund (ETF). The public now has 21 days to comment on the application, while the SEC has a 45-day window to make a decision, expected potentially by late July 2024. It’s important to note that this acknowledgment does not signify approval but indicates that the SEC is reviewing the filing.

ProShares’ move into the spot Ethereum ETF market follows approvals for similar filings from other issuers in May 2024. Bloomberg Intelligence ETF analyst James Seyffart commented on ProShares’ timing, suggesting potential complexities in launching alongside other ETFs.

Separately, the SEC approved Ark Invest’s withdrawal from a joint ETF application with 21Shares, allowing 21Shares to proceed independently without the usual 30-day delay. The decision, effective immediately, was based on assessments that it would not significantly affect investor protection or competition.

Ark Invest and 21Shares announced their split on May 31, with the Ethereum ETF changing its name from ARK 21Shares Ethereum ETF to 21Shares Core Ethereum ETF in an amended S-1 form. Ark Invest mentioned it would not pursue an Ethereum ETF but remains active with its spot Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB).

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Status of Spot Ethereum ETF Filings and Recent Developments

Several potential issuers of spot Ethereum ETFs are still awaiting feedback on their S-1 filings submitted on May 31. Initially expected by June 7, the SEC’s comments have yet to be received by at least two issuers.

According to a recent report, issuers are anticipating feedback this week. This update follows SEC Chair Gary Gensler’s statement on CNBC, noting that the approval process for S-1 forms would “take some time.”

The approval process for these ETFs involves two stages: the 19b-4 filing and the S-1 filing, with the latter currently under SEC review. Bloomberg Intelligence ETF analyst Eric Balchunas previously suggested that further feedback from SEC staff would likely precede final approval.

Despite the delays in S-1 feedback, the acknowledgment of ProShares’ spot Ethereum ETF application and the approval of Ark Invest’s separation from 21Shares mark significant steps forward in the crypto ETF sector. These developments underscore regulatory progress and potential market expansion.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.


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