The U.S. Securities and Exchange Commission (SEC) has initiated the review process for an application submitted by investment firm ProShares for creating an Ethereum Exchange-Traded Fund (ETF). Recently, the New York Stock Exchange (NYSE) Arca filed a proposed rule change to list and trade the ProShares Ether ETF. It is important to note that the filing does not automatically imply approval; instead, it signifies the beginning of the formal evaluation process by the SEC. The SEC has declared a 21-day period for the public to provide feedback on the proposed ETF. Subsequently, SEC officials will have 45 days to make a decision regarding the approval, rejection, or extension of the application review period.

If the ProShares Ether ETF application gets the green light, it will directly mirror the price of Ethereum, allowing investors to gain exposure to Ethereum's price movement without directly owning the cryptocurrency. ProShares intends to have Coinbase Custody Trust Company handle the actual Ethereum assets that back the ETF shares. Bloomberg ETF analyst James Seyffart commented on the filing, expressing intrigue about the development while also hinting that the ProShares ETF might not launch contemporaneously with other Ethereum spot ETFs approved by the SEC in May but yet to receive final registration clearance. Experts suggest that ETFs from issuers like BlackRock, WisdomTree, and Valkyrie may commence trading as early as July. Regardless of the exact launch date of the first Ethereum ETF, its introduction will signify a significant milestone for the cryptocurrency industry.

In addition to the proposed spot ETF, ProShares recently introduced leveraged and inverse Ether futures ETFs, offering traders the opportunity to speculate on Ethereum's price movements. The asset manager was among the pioneers to provide a Bitcoin futures ETF in 2021.