ProShares Spot Ethereum ETF Now Has Updated S-1 Application

Key Points:

• ProShares filed for a spot Ethereum ETF, with BNY Mellon and Coinbase in key roles.
• The SEC is reviewing NYSE Arca’s proposal to list and trade ProShares spot Ethereum ETF, with a decision expected in 45 days.
• The timeline for final approvals and the launch of ProShares spot Ethereum ETF remains uncertain.

ProShares has submitted an S-1 registration statement for the ProShares spot Ethereum ETF, according to a June 11 filing.

ProShares Spot Ethereum ETF Updated Registration Statement

The document elaborates on various participants’ roles in ProShares spot Ethereum ETF, with the Bank of New York Mellon (BNY Mellon) as a pivotal player. BNY Mellon will act as the transfer agent, processing purchase and redemption orders and maintaining ownership records. Additionally, BNY Mellon will be the fund’s administrator and cash custodian.

The filing also details the roles of other key participants. Coinbase Custody will hold the Ethereum, Coinbase Inc. will operate as the prime execution agency, Delaware Trust Company will act as the trustee, and ProShare Capital Management will be the fund’s sponsor. Coinbase Credit is set to function as the trade credit lender, enabling ProShares to borrow Ethereum and cash for transactions that surpass its trading balance.

The document indicates flexibility in these roles, including an initial two-year term for BNY Mellon’s administrator position, with provisions for annual renewals. ProShares reserves the right to add or terminate Ethereum custodians, cash custodians, and prime execution agents as needed. Coinbase also retains the option to resign from its role as a cash customer.

Timeline for Ethereum ETFs Approval Remains Uncertain

Previously, the SEC has acknowledged NYSE Arca’s proposed rule change to list and trade shares of the ProShares spot Ethereum ETF. This proposal, submitted on June 10, is currently open for public comment for 21 days following its publication in the Federal Register. The SEC then has 45 days to approve, disapprove, or extend its review period. If approved, NYSE Arca can list and trade shares of the fund. However, no definitive timeline for the final approvals and launch has been established.

While the SEC has approved the form 19b-4 filings for eight Ether ETFs, the S-1 registration statements, including that of ProShares spot Ethereum ETF, still await approval. Experts remain divided on the potential timeline for these approvals, leaving the launch dates uncertain.