ProShares Awaits SEC Decision on Proposed Ether ETF Amid Increased Crypto Investments
Summary:
The U.S. Securities and Exchange Commission (SEC) is currently reviewing an application from ProShares for an Ether (ETH) exchange-traded fund (ETF). This follows the approval of eight similar ETFs from other companies three weeks prior. The NYSE Arca has proposed a rule change to facilitate the listing and trading of the Ethereum ETF. Final approval from the SEC is pending, which could see the ETFs starting to trade as early as July.
The U.S. Securities and Exchange Commission (SEC) is considering a request to create an Ether (ETH) exchange-traded fund (ETF) from asset management firm ProShares. This comes three weeks after the SEC approved eight similar investment vehicles. On June 10, the SEC announced that the New York Stock Exchange (NYSE) Arca had proposed a change in rules to accommodate the trading and listing of shares from ProShares' Ethereum ETF. The public has 21 days to comment on this proposal after official publication in the Federal Register. This feedback will be used by the SEC to approve, reject, or extend the decision-making period, set at 45 days.
On May 23, the SEC granted approval to 19b-4 filings from eight asset management firms seeking to have their Ethereum ETFs listed and traded for the first time on American exchanges. A final nod of approval from SEC, which involves signing off on S-1 registration statements for these Ethereum ETFs, is awaited before they can officially be traded. This could take a few months, although some industry players anticipate a clearance in July.
"If the ProShares ETF is approved, it will not start trading on the same day as the other approved ETFs. However, we are yet to see how this pans out," noted ETF analyst James Seyffart in a post on June 10. He described the development as interesting.
In context: In October 2023, ProShares became one of the first asset management companies to get SEC's approval for trading and listing shares of a spot investment tied to Ethereum futures. ProShares also operates a Bitcoin Strategy ETF listed on NYSE Arca under the ticker BITO.
Whether the SEC will give ProShares' spot Ethereum ETF the green light following its initial approval remains to be seen. The recent filing indicates that the SEC will simply consider the application.
Published At
6/11/2024 12:11:02 AM
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