The U.S. Securities and Exchange Commission (SEC) is evaluating a spot Ether ETF application submitted by asset manager ProShares. This development comes roughly three weeks after the SEC greenlit eight similar proposals for Ether-linked ETFs.
The filing made public on June 10th, reveals that the New York Stock Exchange Arca is seeking a rule change to list and trade shares of the ProShares Ethereum ETF. The SEC is currently soliciting public comments on the application for a period of 21 days following its publication in the Federal Register. This initiates a 45-day window for the SEC to make a decision. The commission has the option to approve, disapprove, or extend the review timeline for the ProShares ETF.
Experts believe approval is not guaranteed, despite the recent greenlights for other Ether ETFs. Analyst James Seyffart suggests the ProShares offering might not launch alongside the previously approved ETFs, but the exact timeline remains unclear.
This isn’t ProShares’ first foray into the world of Ether-based investment vehicles. In October 2023, they secured SEC approval for a spot investment vehicle tied to Ether futures, also listed on NYSE Arca under the ticker BITO.
The news has generated excitement within the crypto community as a spot Ether ETF could offer investors a more direct way to gain exposure to Ethereum’s price movement without needing to purchase and hold the cryptocurrency themselves. Proponents believe such ETFs could also attract traditional investors hesitant to directly enter the crypto market.
However, some lingering concerns remain. The SEC has historically expressed reservations about approving spot Bitcoin ETFs, citing potential market manipulation and custody concerns. Whether these same anxieties will apply to Ether ETFs is yet to be seen.
The SEC’s decision on the ProShares application will be closely watched by investors and industry participants alike. With the growing interest in cryptocurrency, a green light for this ETF could pave the way for wider adoption of Ether and other digital assets within traditional investment portfolios.
