Regulatory Progress in Crypto ETFs: SEC Acknowledges ProShares’ Spot Ethereum ETF Filing
The US Securities and Exchange Commission (SEC) has recently recognized ProShares’ spot Ethereum exchange-traded fund (ETF) application. This acknowledgement follows ProShares’ proposal to list and trade spot Ethereum ETF shares on the New York Stock Exchange (NYSE) on June 6.
SEC Recognition and Application Process
- The SEC noted NYSE Arca’s rule change proposal to facilitate the ETF listing in a June 10 filing.
- The public now has 21 days to comment on the application.
- The SEC has 45 days to make a decision, potentially by late July 2024.
- However, it is important to note that acknowledgment does not imply approval. It simply indicates that the SEC is reviewing the filing.
Other Developments in the Sector
- ProShares’ entry into the spot Ethereum ETF market follows the approval of multiple 19b-4 filings in May 2024 by other potential issuers.
- Bloomberg Intelligence ETF analyst James Seyffart commented on the timing of ProShares’ move, signaling potential delays in the launch of the ETF.
- Additionally, the SEC approved Ark Invest’s exit from a joint ETF application with 21Shares, allowing 21Shares to proceed independently.
Ark Invest’s Split and Name Change
- Ark Invest and 21Shares announced their split on May 31.
- A newly amended S-1 form reveals that the spot Ethereum ETF will change its name from ARK 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.
- Ark Invest has decided against moving forward with an Ethereum ETF but remains active with its Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB).
Pending Feedback for Ethereum ETF Issuers
- Other potential spot Ethereum ETF issuers are still awaiting feedback on their S-1 filings submitted on May 31.
- Issuers anticipate feedback soon, following comments from SEC Chair Gary Gensler that the approval process would take time.
- The approval process involves 19b-4 filings and S-1 filings, with the latter currently under review.
Hot Take: Sign of Progress in Crypto ETFs
Overall, the acknowledgment of ProShares’ spot Ethereum ETF application and the approval of Ark Invest’s split from 21Shares signify significant progress in the crypto ETF sector. These developments indicate regulatory recognition and potential market expansion in the near future.
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