Ether ETF Applications Flood SEC, ProShares Joins the Race

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In the race to launch the first Ether Exchange-Traded Fund (ETF), the Securities and Exchange Commission (SEC) has been overloaded with applications from various firms seeking approval. Among the contenders, ProShares has recently made its move, filing for an Ether ETF, with a grand total of 11 Ether-based filings being submitted in less than a week. 

ProShares Leads the Charge with Multiple Ether ETF Filings Amidst a Wave of Applications

The surge in Ether ETF applications comes in the wake of increasing demand from investors and institutions seeking exposure to the second-largest cryptocurrency by market capitalization. 

On the 3rd of Aug 2023, ProShares filed an ETF application, which outlines an equal-weight ETF that will track the performance of Bitcoin and Ether futures contracts maturing monthly. The aim is to offer investors exposure to the price movements of both leading cryptocurrencies through a regulated and easily tradable vehicle.

Recently, a prominent ETF analyst James Seyffart stated in his tweet that fund manager ProShares has now filed four separate Ether-based ETF filings in the last few days, including Bitcoin and Ether futures options, a short Ether Strategy ETF, and an Ether Strategy ETF.

The overflow in Ether-related ETF applications has been remarkable, with a total of 11 filings submitted in the past week. All of these applications focus on futures ETFs, as firms look to create investment vehicles tied to the performance of Ether without directly holding the underlying asset.

The trend was initiated by Volatility Shares, which filed for the Volatility Shares Ether Strategy ETF on July 28. Since then, major players in the financial industry have joined the fray as Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments all jumped in, submitting new Ether futures ETF applications on August 1.

SEC Flooded with Ether ETF Applications Amidst Growing Demand

It is noteworthy that the SEC has not yet approved any ETFs that track Ether futures contracts, unlike Bitcoin futures ETFs.

The Ether ETFs will launch 75 days after their respective filing dates, with the Volatility Shares ETF slated to launch on October 12 if the SEC does not reject any of the applications.

One crucial distinction gaining attention is the difference between futures and spot ETF products. Futures ETFs track the price of futures contracts, while spot ETFs involve the issuer directly purchasing and holding the underlying asset. The latter is widely perceived as more legitimate as it offers direct exposure to the asset itself.

The current influx of Ether-focused applications is part of a broader trend in the financial markets, with major asset management firms also seeking to launch spot Bitcoin ETFs. BlackRock, the world’s largest asset manager, is among the prominent players looking to offer the first spot Bitcoin ETF in the United States.

As the SEC evaluates these applications, the crypto community awaits a decision that could significantly impact the accessibility and appeal of cryptocurrency investments for mainstream investors.