ProShares, a leading issuer of exchange-traded funds (ETFs) managing $70 billion in assets, has rapidly emerged as a major contender in the race to bring spot Ether ETFs to market.
In a significant move, ProShares filed a 19b-4 application and an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on June 7 and June 11, respectively, signaling its intention to launch a spot Ethereum ETF.
The SEC acknowledged ProShares’ 19b-4 application on June 10, a remarkably swift response from the regulator. James Seyffart, an ETF analyst at Bloomberg, remarked, “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.”
Nate Geraci, co-founder of ETF Institute, also noted ProShares’ entry into the spot ETH ETF race, expressing surprise that the firm hadn’t launched a spot BTC ETF earlier.
Key partners in ProShares’ spot Ether ETF endeavor include Bank of New York Mellon (BNY Mellon) as administrator and cash custodian, Coinbase for custody, execution, and credit services, and Delaware Trust Company as trustee.
Coinbase Credit will provide trade credit lending services, allowing ProShares to borrow Ethereum (ETH) and cash for certain transactions exceeding its trading balance.
This development follows the SEC’s approval of 19b-4 filings from eight prospective spot Ethereum ETF issuers on May 23, paving the way for Ether ETFs to begin trading pending approval of their S-1 registration statements.
ProShares’ foray into the spot Ether ETF market coincided with the launch of ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD) on the New York Stock Exchange on June 7. ETHD became the first 2x short Ethereum ETF on the market, with ETHT following shortly after Volatility Shares’ 2x Ether ETF (ETHU) launch on June 4.