• ProShares is leading the race to launch an Ether Exchange-Traded Fund (ETF) by filing for 11 Ether-based ETFs in a week.
• The surge of applications focuses on futures ETFs, as investors and institutions seek exposure to the second-largest cryptocurrency by market capitalization.
• ProShares has recently submitted an ETF application outlining a unique equal-weight ETF that will track the performance of Bitcoin and Ether futures contracts that mature monthly.
ProShares Leads Race To Launch Ether ETF
ProShares is at the forefront in the highly competitive race to launch the first Ether Exchange-Traded Fund (ETF). The Securities and Exchange Commission (SEC) has been flooded with applications from various firms eager to gain approval, with ProShares recently taking a significant step by filing for 11 Ether-based ETFs in a week.
Focus On Futures ETFs
The surge in Ether ETF applications is driven by increasing demand from investors and institutions seeking exposure to the second-largest cryptocurrency by market capitalization. As such, most of these filings focus on futures ETFs as they provide investors with regulated and easily tradable vehicles to access price movements of cryptocurrencies.
ProShares’ Unique Equal Weighted ETF
On August 3, 2023, ProShares submitted an application outlining a unique equal weight Ethereum Exchange Traded Fund (ETF). This proposed fund will track the performance of Bitcoin and Ether futures contracts that mature monthly, allowing investors to get involved in both leading cryptocurrencies without having direct access.
Awaiting SEC Approval
The SEC is yet to approve any Ethereum futures exchange traded funds (ETF) but their decision could have major implications on investments in cryptocurrencies if approved. Prominent ETF analyst James Seyffart has noted that Volatility Shares are currently ahead of all other issuers but also pointed out that ProShares managed to get their 2X Bitcoin Futures EFT ($BITX) through this SEC previously.
As demand for cryptocurrency investments grows, more firms are submitting applications for Ethereum exchange traded funds which could potentially open up new investment opportunities for both individual and institutional investors alike when approved by the SEC.