ProShares is a leading issuer of ETFs. They have filed a request to list Ethereum ETFs and allow them to be traded on the New York Stock Exchange.
The filing Coinbase Custody Trust Company will be the custodian of ETH for the ProShares Ethereum ETF in accordance with United States Securities Exchange Commission.
The Asset Manager noted that both the company and any associated parties would not engage in Ethereum staking activities.
Crypto.news reports that prospective spot Ethereum ETF issues have updated their S-1 and 19b-4 documents to eliminate staking. The SEC is concerned about the staking component of spot Ethereum exchange-traded funds.
Investors who are looking for additional returns from stake rewards may be discouraged by the lack of staking capability in these ETFs.
Individuals who purchase, retain, and stake ETH is able to earn staking reward, resulting an extra yield. The spot Ethereum ETFs that do not include the staking option will no longer offer additional benefits for investors.
SEC can respond within 45 days (extended to 90) of publication. ProShares filed its spot ETH-ETF on June 6, so approval is expected in late July.
ProShares has recently announced a new proposal. introduction of two Ethereum-linked ETFsThe two ETFs are ProShares Ultra Ether ETF and ProShares UltraShort Ether ETF, which aim to achieve daily ETH return of -2x and 2x.
On Friday, June 7, both ETFs will be listed at the NYSE.
ProShares has a reputation for being the pioneer in launching the first Bitcoin-linked ETF In 2021, Bitcoin Strategy ETF will be launched (BITO), a futures contract ETF. ProShares, however, hasn’t pursued an ETF that invests in Bitcoins (BTC), unlike other major asset managers like BlackrockGrayscale Fidelity.
Importantly, both Ethereum spot ETF filings need to receive approval before being officially traded on the exchange. This is the approval in May It was only for 19b-4.
Analysts expect that these ETFs will be approved in July 2024.
The products will provide new flexibility to investors, and a more strategic approach in the highly volatile cryptocurrency market.
Bitcoin ETF attracted a large number of investors $2.4 billion In a recent X blog post, Senior Bloomberg ETF analyst Eric Balchunas reported that there have been consecutive inflows of funds for the past 15-day period.
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Source: crypto.news