ProShares Quickly Emerges As Spot Ether ETF Contender

The firm filed 19b-4 and S-1 forms with the SEC on June 7 and June 11.

By: Samuel Haig Loading...

ProShares Quickly Emerges As Spot Ether ETF Contender

ProShares, an issuer of exchange-traded funds (ETFs) managing $70 billion in assets, has quickly emerged as a major contender in the race to bring spot Ether ETFs to market.

On June 11, ProShares filed an S-1 registration statement for a spot Ethereum ETF. The filing came one day after the U.S. Securities and Exchange Commission (SEC) acknowledged ProShares’ 19b-4 application, which it submitted just a few days earlier on June 7.

“SEC just added the ProShares' Ethereum ETF Filing to its website,” said James Seyffart, an ETF analyst at Bloomberg. “That is extremely quick. Instinct initially says this won't launch on day one with the other ETFs whenever that is but who knows. This is interesting.”

“Looks like ProShares entering spot ETH ETF race,” tweeted Nate Geraci, co-founder of ETF Institute. “Was always surprised they didn’t launch spot BTC ETF.”

Bank of New York Mellon (BNY Mellon) would act as administrator, cash custodian, and transfer agent for ProShares’ spot Ether ETF. Coinbase would provide custody, execution, and credit services to the fund. Delaware Trust Company would serve as trustee, and ProShare Capital Management is the fund’s sponsor.

Coinbase Credit will serve as the company’s trade credit lender, allowing it to borrow Ethereum (ETH) and cash for certain transactions that exceed its trading balance.

Bank of New York Mellon will serve as transfer agent, processing purchase and redemption orders and maintaining fund ownership records.

The filing also details previously disclosed roles, including BNY Mellon’s role as administrator and cash custodian, Coinbase Custody’s role as Ethereum custodian, Coinbase Inc.’s role as prime execution agency, Delaware Trust Company’s role as trustee, and ProShare Capital Management’s role as sponsor.

The news comes after the SEC approved the 19b-4 filings from eight prospective spot Ethereum ETF issuers on May 23. The move paves the way for the Ether ETFs to begin trading once the SEC also approves their S-1 registration statements, which the regulator has indicated will take place in the coming months.

The SEC’s 19b-4 approvals comprised an abrupt change of heart from the SEC, which had appeared to exhibit hostility towards the applicants in the months leading to the May deadline.

ProShares launches leveraged ETFs

ProShares’ spot Ether ETF bid coincided with the firm launching 2x leveraged long and short ETFs offering exposure to Ether.

On June 7, the ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD) debuted on the New York Stock Exchange. ETHD was the first 2x short Ethereum ETF to enter the market, while ETHT followed Volatility Shares’ 2x Ether ETF (ETHU) launching on June 4.