Source: Blockchain Knight
The U.S. Securities and Exchange Commission (SEC) has acknowledged the proposed rule change for the ProShares Ethereum ETF and approved Ark Invest’s withdrawal from 21 Shares on June 10th.
The SEC’s notice regarding ProShares indicates that while the proposed rule change has been acknowledged, it has not been approved.
According to the SEC, they must take action within 45 days of the proposal being published or may choose to delay it for up to 90 days. At that time, the agency must approve, disapprove, or initiate additional procedures to determine the outcome of the application.
This timeline could potentially push back the launch date of ProShares beyond that of its competitors.
Bloomberg ETF analyst James Seyffart commented, “Instinct initially stated that this ETF would not launch alongside others on the first day, but who knows.”
The goal of the New York Stock Exchange Arca is to list and trade shares of ProShares funds.
The SEC has confirmed that the proposed funds by 21Shares can continue to operate without Ark Invest serving as the fund’s name and sub-advisor.
The agency waived the usual 30-day operational delay, allowing the changes to take effect on the submission date. This immediate change was permitted as it would not have a significant impact on investor protection or burden competition.
Ark and 21Shares revealed that they parted ways on May 31st regarding the fund.
In a statement to Bloomberg ETF analyst Erich Balchunas, Ark stated that it “will not be moving forward” with the Ethereum ETF, but did not provide a clear reason for the withdrawal. Currently, the company is still involved in the spot BTC ETF ARKB.
Although the SEC approved rule changes for eight spot ETH ETFs on May 23rd, the agency has not yet approved the applicants’ S-1 registration statements.
As a result, the applicants have not launched products for trading, and there is no clear launch date for the various spot Ethereum ETFs.
Balchunas believes that these applications may launch by the end of June, with a “best-case scenario” date of July 4th. JPMorgan Chase predicts that these funds will begin trading in November.
