Key Points
- ProShares has filed an S-1 registration statement to launch an Ethereum ETF.
- Despite this, Ethereum’s price and network growth have continued to decline.
ProShares Moves Towards Ethereum ETF
ProShares, a significant ETF issuer, has taken a considerable step towards the launch of a spot Ethereum ETF.
They have done this by filing an S-1 registration statement.
Key Roles in the ETF
According to the filing, Coinbase Credit will act as a critical partner by providing ProShares with a trade credit line.
This move will enable ProShares to borrow Ethereum and cash for certain transactions that exceed their immediate trading balance.
Bank of New York Mellon (BNY Mellon) will serve as the transfer agent, which means they will be responsible for processing both purchases and redemption orders for the ETF.
BNY Mellon will also serve as administrator and cash custodian, while Coinbase Custody will handle the safekeeping of the Ethereum assets.
It’s worth noting that the filing allows for some flexibility in these roles.
After an initial two-year term with annual renewals for BNY Mellon’s administrator role, ProShares can make changes.
The ETF can also add or remove custodians for both Ethereum and cash, and switch prime execution agencies at any time.
Ethereum’s Performance
Despite ProShares’ enthusiasm, the price of Ethereum continued to fall.
At the time of writing, Ethereum had dipped below the $3,500 mark and was trading at $3,497.81.
Despite the significant price drop, the overall trend for Ethereum appeared mostly positive.
Since the 19th of May, Ethereum’s price has been moving upwards, showing higher highs and higher lows, indicative of a bullish trend.
However, analysis of Santiment’s data revealed that Ethereum’s network growth had declined along with the price, indicating that new addresses were losing interest in Ethereum.
