ProShares
filed
an
S-1
registration
statement
for
its
spot

Ethereum
ETF
on

June
11,
confirming
and
expanding
on
the
roles
of
various
fund
participants.

According
to
the
filing,

Coinbase
Credit
will
serve
as
the
company’s
trade
credit
lender,
allowing
it
to
borrow
Ethereum
(ETH)
and
cash
for
certain
transactions
that
exceed
its
trading
balance.

Bank
of
New
York
Mellon
will
serve
as
transfer
agent,
processing
purchase
and
redemption
orders
and
maintaining
fund
ownership
records.

 

The
filing
also
details
previously
disclosed
roles,
including
BNY
Mellon’s
role
as
administrator
and
cash
custodian,
Coinbase
Custody’s
role
as
Ethereum
custodian,
Coinbase
Inc.’s
role
as
prime
execution
agency,
Delaware
Trust
Company’s
role
as
trustee,
and
ProShare
Capital
Management’s
role
as
sponsor.

The
filing
allows
for
changes
to
each
role,
including
an
initial
two-year
term
for
BNY
Mellon’s
administrator
role
with
annual
renewals.

ProShares
can
also
add
or
terminate
ETH
custodians,
cash
custodians,
and
prime
execution
agents
at
any
time.
Additionally,
Coinbase
has
the
option
to
resign
from
its
role
as
cash
custodian.

Some
applications
from
other
firms
allow
for
comparable,
but
not
identical,
changes
among
participants.

S-1
follows
19b-4
rule
change

The
SEC
has

acknowledged
NYSE
Arca’s
proposed
rule
change
on
behalf
of
ProShares.
If
approved,
the
change
will
allow
the
exchange
to
list
and
trade
shares
of
the
fund.

 

The
SEC
has
not
yet
approved
the
proposed
rule
change
concerning
ProShares’
fund.
Based
on
market
projections,
the
decision
is
expected
to
take
weeks
to
months.
However,
as
of
press
time,
there
is
no
clear
timeline
for
the
approvals
and
launch.

Bloomberg
ETF
analyst
James
Seyffart
said
the
fund
may
not
launch
alongside
competing
spot
ETH
ETFs,
which
began
to
seek
approval
at
an
earlier
date.

The
SEC
approved
the
eight
competing
spot
Ethereum
ETF
applications’
rule
changes
on

May
23.
It
has
yet
to
approve
each
fund’s
corresponding
S-1
registrations,
which
will
allow
issuers
to
launch
the
funds.

Mentioned
in
this
article

Go to Source
Author: Mike Dalton

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