Ethereum
ProShares Files S-1 for Ethereum Spot ETF, Expands Roles of BNY Mellon and Coinbase
ProShares filed an S-1 registration statement for its spot Ethereum ETF on June 11confirming and expanding the roles of the different participants in the fund.
According to the file, Coinbase Credit will serve as the company’s trade credit lender, allowing it to borrow Ethereum (ETH) and cash for certain transactions in excess of its trade balance.
Bank of New York Mellon will serve as transfer agent, processing purchase and redemption orders and maintaining records of ownership of the funds.
The filing also details previously disclosed roles, including BNY Mellon’s role as trustee and liquidity custodian, Coinbase Custody’s role as Ethereum custodian, Coinbase Inc.’s role as liquidity agency. principal execution, the role of Delaware Trust Company as trustee and the role of ProShare Capital Management as sponsor. .
The filing allows for changes to each role, including an initial two-year term for the BNY Mellon director role with annual renewals.
ProShares may also add or remove ETH custodians, liquidity custodians and master execution agents at any time. Additionally, Coinbase has the option to resign from its role as a liquidity custodian.
Some applications from other companies allow for comparable, but not identical, changes among participants.
S-1 follows rule change 19b-4
The SEC has recognized Rule change proposed by NYSE Arca on behalf of ProShares. If approved, the change will allow the exchange to list and trade the fund’s shares.
The SEC has not yet approved the proposed rule change regarding the ProShares fund. Based on market projections, the decision is expected to take weeks, if not months. However, at press time, there was no clear timeline for approvals and launch.
Bloomberg ETF analyst James Seyffart said the fund may not launch alongside competing spot ETH ETFs, which began seeking approval at an earlier date.
The SEC approved rule changes for eight competing Ethereum ETF applications on May 23. It still needs to approve the corresponding S-1 registrations for each fund, which will allow issuers to launch the funds.
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Published in: Ethereum, WE, ETFs