The U.S. Securities and Exchange Commission (SEC) has started reviewing an application from investment firm ProShares to create an Ethereum ETF.
According to a report, the New York Stock Exchange (NYSE) Arca had filed a proposed rule change that would allow it to list and trade the ProShares Ether ETF. However, the SEC publishing the filing doesn’t mean approval yet, but it kicks off the formal review process.
However, the SEC said there will be a 21-day period for the public to share comments on the proposed ETF. After that, SEC officials will have 45 days to approve, reject, or extend their review of the application thereafter.
If approved, ProShares Ether ETF would directly track the price of Ethereum itself. Investors could buy shares to get exposure to Ethereum’s price without actually buying and holding the crypto directly, which can be complicated.
Moreover, ProShares plans to have Coinbase Custody Trust Company hold the actual Ethereum backing the ETF shares.
“This is interesting,” commented Bloomberg ETF analyst James Seyffart regarding the filing. However, he cautioned that the ProShares ETF may not launch simultaneously with several other Ethereum spot ETFs that were approved by the SEC in May but still await final registration clearance.
ETFs from issuers like BlackRock, WisdomTree, and Valkyrie could begin trading as early as July according to some experts. Regardless of exactly when the first Ethereum ETF hits the market, its arrival would mark a major milestone for the crypto industry.
In addition to its proposed spot ETF, ProShares has already launched leveraged and inverse Ether futures ETFs this month that allow traders to speculate on the price of Ethereum. The asset manager was also one of the first to offer a Bitcoin futures ETF in 2021.
Also Read: Hong Kong May Approve Staking for Spot Ethereum ETFs This Year
