ProShares recently filed an S-1 registration statement for its spot Ethereum ETF, providing details on the roles of various fund participants, such as Coinbase Credit as the trade credit lender and Bank of New York Mellon as the transfer agent. The filing also includes previously disclosed roles for entities like BNY Mellon, Coinbase Custody, and ProShare Capital Management. The roles can be changed, with BNY Mellon’s administrator role having an initial two-year term with annual renewals. ProShares has the ability to add or terminate ETH custodians, cash custodians, and prime execution agents at any time.
The filing follows the SEC’s acknowledgement of NYSE Arca’s proposed rule change for ProShares, which, if approved, would allow the exchange to list and trade shares of the fund. While the SEC has not yet approved the proposed rule change for ProShares’ fund, market projections suggest that the decision could take weeks to months. However, there is currently no clear timeline for the approvals and launch of the fund. Bloomberg ETF analyst James Seyffart noted that the fund may not launch alongside competing spot ETH ETFs, which have been seeking approval for a longer period.
On May 23, the SEC approved rule changes for eight competing spot Ethereum ETF applications, but the corresponding S-1 registrations have yet to be approved, delaying the launch of these funds. It remains to be seen when these funds will be approved and launched in the market. Consequently, ProShares’ spot Ethereum ETF may not launch simultaneously with its competitors, depending on the approval timelines set by the SEC. Stay updated on the latest developments in the ETF market with the Alpha Market Report.
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