ProShares becomes 11th company to file for Ethereum ETF in a week

ProShares joins the ranks of Ether ETF applicants, filing for an equal-weight Bitcoin and Ethereum exchange-traded fund, making it the 11th application of its kind within a week.

The U.S. Securities and Exchange Commission (SEC) is experiencing a surge in applications for Ethereum futures exchange-traded funds (ETFs), with an astonishing 11 Ethereum-based filings submitted within the span of just one week. 

The most recent application, filed on Aug. 3, comes from ProShares, a prominent fund manager. This new filing proposes an equal-weight Bitcoin and Ethereum ETF, aiming to track “the performance of holding long positions in the nearest maturing monthly Bitcoin and Ether futures contracts.”

ETF analyst James Seyffart of Bloomberg highlights that ProShares has now submitted a total of four separate filings for Ethereum-based ETFs in recent days. These include a dual Bitcoin and Ethereum futures strategy ETF, a short Ether strategy ETF, and an Ether strategy ETF.

Ether ETF applications surge

The recent week has seen a total of 11 Ethereum-related ETF applications, all of which focus on futures ETFs. The surge in Ethereum-based ETF filings began with Volatility Shares, which submitted its filing for the Volatility Shares Ether Strategy ETF on July 28.

Soon after, other major players like Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments joined the race by filing their respective Ether futures applications on Aug. 1.

It’s worth noting that the SEC has never greenlit an ETF that tracks Ether futures contracts. On the contrary, Bitcoin futures ETFs have been in existence since October 2021.

One crucial distinction between futures and spot ETF products is how they track asset prices. Futures ETFs follow the price of futures contracts, while spot ETFs involve the issuer purchasing the underlying asset directly. Spot ETFs are generally considered more valid as they involve the fund manager holding the real asset.

In recent months, there has been growing anticipation regarding the approval of a spot Bitcoin exchange-traded fund. Presently, the US only allows investments in Bitcoin futures ETFs, which are backed by Bitcoin derivatives.

ProShares’ latest Ether ETF filing comes in addition to its existing roster of crypto-related funds, including a Bitcoin futures ETF. Moreover, last December, the group submitted an application with the SEC for an ETF focused on the metaverse.