The U.S. Securities and Exchange Commission (SEC) is currently evaluating ProShares’ proposal for a spot Ethereum exchange-traded fund (ETF). ProShares submitted the application on June 6, aiming to list and trade the ETF shares on the New York Stock Exchange (NYSE). The SEC acknowledged this application in a filing on June 10, which included a proposed rule change by NYSE Arca to facilitate the listing.
What Is the SEC’s Timeline?
The public is now invited to comment on the application for 21 days, while the SEC has up to 45 days to make a preliminary decision, likely by the end of July 2024. However, this does not imply automatic approval but confirms the SEC is reviewing the submission. ProShares’ move follows several other issuers whose 19b-4 applications were approved in May 2024. ETF analyst James Seyffart noted the intriguing timing of ProShares’ entry into the market.
In a parallel development, the SEC granted Ark Invest’s request to exit its joint ETF application with 21Shares, allowing 21Shares to proceed independently. The SEC waived the usual 30-day delay, making this change effective immediately, citing minimal impact on investor protection or market competition. This decision has accelerated 21Shares’ efforts to launch their own ETF.
Key Insights for Investors
- The SEC has a 45-day window to evaluate ProShares’ application.
- Public comments will be collected over the next 21 days.
- The SEC’s acceptance of an application does not guarantee its approval.
- Ark Invest’s exit accelerates 21Shares’ independent ETF efforts.
- Issuers are still awaiting critical feedback on their S-1 applications.
The spot Ethereum ETF landscape is witnessing significant activity, with ProShares’ application under review and 21Shares moving forward independently. Investors are closely monitoring these developments, as the SEC’s feedback and final decisions will play a crucial role in shaping the future of Ethereum ETFs.