Key Takeaways
- SEC is soliciting public comments on the ETF application for 21 days
- SEC has 45 days to approve, disapprove, or institute additional proceedings to determine the applications’ outcomes.
The US Securities and Exchange Commission (SEC) has acknowledged a proposed rule change for ProShares Ethereum ETF. The development comes days after ProShares filed a proposal to list and trade spot Ethereum ETF shares on the New York Stock Exchange (NYSE) on June 6.
The regulatory watchdog now has 45 days to decide on the proposed rule change while the public is granted 21 days to comment on the application.
By late July 2024, SEC is mandated to approve, disapprove, or institute additional proceedings to determine the applications’ outcomes.
Commenting on this development, Bloomberg Intelligence ETF analyst James Seyffart stated; “Instinct initially says the ProShares ETF won’t launch on day 1 with the other ETFs whenever that is but who knows,”.He dubbed the timing of ProShares move as “Interesting”.
His comment comes against the backdrop ProShares’ entry into the spot Ethereum ETF market following several other potential issuers whose 19b-4 filings were approved in May 2024. On May 23rd, the SEC gave the green light to eight asset managers seeking to launch the first-ever spot Ether ETFs in the US. However, these ETFs can’t start trading yet. The SEC needs to approve their S-1 registration statements, a process that could take months.
In a similar development, on June 10th, the SEC approved a change to 21Shares’ spot Ethereum ETF application, allowing them to proceed without Ark Invest’s involvement. This follows Ark’s announcement on May 31st that they would no longer be participating in the fund. While no official reason was given for their departure, Ark remains involved in the spot Bitcoin ETF (ARKB).
The SEC also fast-tracked the change, waiving its usual 30-day waiting period. As per media reports, Ark stated that it “will not be moving forward” with an Ethereum ETF but failed to provided a clear reason for the departure.
