Ethereum
the SEC added that of ProShares
In yesterday’s news, the SEC added ProShares’ application to those expected to be definitively approved for the issuance of Ethereum spot ETFs.
By May, he had approved eight more, but clearly the ProShares one hadn’t arrived yet.
The fact is that, although the applications have already been approved, the process to achieve final approval of all the documentation is not yet completed, and it is assumed that it will not be completed before July, or at most end of June, so in fact there is still time to submit new applications.
SEC News: ProShares Ethereum ETF Approved
THE document released yesterday by the SEC reveals that NYSE Arca has proposed a rule change for listing and trading shares of the ProShares Ethereum ETF.
The fund will simply be called ProShares Ethereum ETF, and as of yet it does not have a ticker.
Now, the SEC will allow time to submit public comments on this application until the end of the month, and then it will have 45 days to approve, disapprove or extend the application.
It is, however, very likely that the final decision will come with all the others, just as happened in May and January, when in a single day the SEC approved all requests for issuance of a Spot Bitcoin ETF on American stock exchanges.
There are now nine applications expected to be approved in July, and since with this ProShares application there is until the end of June to submit comments, it seems likely that overall approval may not occur until July.
The approval process
Concretely, what the SEC approved en bloc in May were the requests aimed at being able to issue a Ethereum Spot ETF on US exchanges submitted by eight companies with Form 19b-4.
This is actually only the first step, because to obtain final approval it is necessary for the SEC to also approve the Form S-1.
Currently, all eight applicant companies have not yet submitted this final Form S-1, although at least one (BlackRock) has already done so.
Admittedly, it has not yet been presented by the ninth applicant, namely ProShares.
Approval of Form S-1 constitutes the final green light, after which ETF shares can actually land on the stock exchange.
In January, when the S-1 forms of the Bitcoin spot ETFs were approved, the actual landing on the stock exchange took place the next day, because everything was already ready.
The same thing could happen to those who are on Ethereumknowing that for several weeks the issuing companies have been preparing the actual launch.
Additionally, although the SEC will most likely approve all of the S-1 forms, it is not certain that the ETFs will be listed on the same day, so there is a bit of competition between different issuers to be among the first to have the possibility of launching the actual transactions on the stock exchange.
Success
THE spot Bitcoin ETFs launched in January on the American stock exchanges were very successful from the start.
It should be noted, however, that in the first weeks the Grayscale ETF took the opportunity to liquidate many BTC, given that previously it was a purely over-the-counter fund that could not easily liquidate the underlying and which, over the years, had accumulated as much as 620,000 BTC.
It is assumed that something similar could also happen this time, given that one of the ETFs is precisely the Grayscale Ethereum Trust, which holds over $10.7 billion worth of ETH.
The Grayscale Bitcoin Trust fell from $28.5 billion to $19.2 billion, and as it is speculated that Ethereum ETFs could attract capital equal to about a quarter or a fifth of that of Bitcointhere is a risk that the current 10.7 billion is too high.
Therefore, after the actual trading debut, it will be necessary to distinguish between daily trading volumes, which could be significant, overall capital inflows or outflows on all new ETFs, and grayscale liquidations.
In this context, even if in the case of high trading volumes this launch can immediately be considered a success, it will be necessary to wait for the situation to stabilize before being able to make a final judgment.
As for Bitcoin, it was obvious from the start that the new ETFs were a success, but it took a few weeks before this success could start to have positive effects on the price of BTC.
It is no coincidence that the price of ETH does not increase in these days of anticipation, probably also because in reality a drop in its price is expected after the effective landing on the stock market of its new ETFs .