The US Securities and Exchange Commission (SEC) has officially acknowledged a proposed rule change for the ProShares Ethereum ETF. This move follows ProShares submitting a proposal to list and trade spot Ethereum ETF shares on the New York Stock Exchange (NYSE) on June 6.
Under the regulatory process, the SEC now has a 45-day window to deliberate on the proposed rule change, while members of the public are granted 21 days to offer their comments on the application. The SEC is expected to decide on the application by late July 2024, which could include approval, disapproval, or further proceedings to determine the outcome.
Bloomberg Intelligence ETF analyst James Seyffart weighed in on the development, expressing uncertainty about the ProShares ETF’s immediate launch alongside other ETFs. He described the timing of ProShares’ move as “interesting,” suggesting potential complexities in the ETF’s rollout.
ProShares’ entry into the spot Ethereum ETF market follows the approval of 19b-4 filings by several other potential issuers in May 2024. Notably, on May 23, the SEC approved eight asset managers seeking to introduce the first-ever spot Ether ETFs in the US. However, these ETFs remain pending commencement of trading as the SEC reviews their S-1 registration statements, a process that could extend over several months.
On June 10, the SEC approved a modification to 21Shares’ spot Ethereum ETF application, enabling the company to proceed without involvement from Ark Invest. This decision followed Ark’s announcement on May 31 that it would no longer participate in the fund. While no explicit reason was provided for Ark’s withdrawal, the firm continues to be engaged in the spot Bitcoin ETF (ARKB).
