ProShares Files To List Two Spot Ethereum ETFs, Approval Odd Is High

Asset manager ProShares have filed to list two spot Ethereum ETF products with a higher than usual approval odds
By Godfrey Benjamin
Here's Why US Spot Ethereum ETFs See Largest $79M in Outflows Since July?

Highlights

  • ProShares wants to list 2 new spot Ethereum ETF
  • Race for this particular product is heating up
  • Approval odds for mainstream or regular Ethereum ETF remains low

Only a few days after introducing the first Bitcoin ETF that targets 2x daily Bitcoin (BTC) returns, premier ETF provider and asset manager ProShares is now eyeing a similar spot Ethereum ETF.

Advertisement
Advertisement

ProShares Making a Bold Ether ETF Play

According to senior Bloomberg analyst Eric Balchunas, ProShares has applied to list 2x and -2x spot Ethereum ETFs with the United States Securities and Exchange Commission (SEC). The fling was made as 40 Act because ProShares does not hold Ethereum directly. Instead, it utilizes swap contracts to expose investors to the cryptocurrency.

Additionally, the filing shares many similarities with the 2x spot Bitcoin ETF that ProShares introduced earlier. ProShares UltraShort Bitcoin ETF (SBIT) and ProShares Ultra Bitcoin ETF (BITU) were designed to offer the accessibility, convenience, and efficiency of traditional ETFs to investors seeking leveraged or short BTC exposure. They are a one-of-a-kind ETF but they both have their specific utilization.

While “BITU offers investors the opportunity to pursue magnified Bitcoin returns or target a level of exposure with less money at risk. SBIT allows investors to seek to profit when the price of Bitcoin drops or hedge their Bitcoin exposure,” per a statement from Michael L. Sapir, ProShares’ CEO.

The ProShares 2x Ether ETF filing comes after Defiance Investment also filed a 2x leveraged Ether Futures ETF that will potentially trade under the ticker ETHL  yesterday. 

This ETF could potentially commence trading as soon as late June. Defiance also launched a 2X Short MicroStrategy (MSTR) ETF, a product that was recently criticized by Adam Back, Blockstream CEO. 

Back labeled the offering as “awful” while questioning its longevity on the premise that shorting MicroStrategy and longing Bitcoin was not a smart play considering the duos correlation.

Advertisement
Advertisement

Spot Ethereum ETF Approval Odds

Markedly, Ether ETF has taken the spotlight in the cryptocurrency ecosystem as enthusiasts anticipate potential approval from the SEC for the offering. There have been speculations about the Commission’s stance on having a spot Ethereum ETF, especially since the SEC is intensifying efforts to categorize the underlying cryptocurrency as a security.

It appears that the odds of having ProShares and Defiance’s filing approved is high but this is not the case for core spot Ethereum ETFs. To highlight this uncertainty, Polymarket gamblers have placed their bets against Ethereum ETF approval on or before May 31. 

At the moment, the odds for approval on the platform is set at 45%. Per the broader market charter, approval odds don’t look too promising for spot Ethereum ETFs.

Advertisement
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.