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Ethereum ETF update: ProShares steps up with S-1 filing as ETH slides – AMBCrypto News

  • ProShares has filed an S-1 to launch an Ethereum ETF.
  • The price of ETH continued to fall as the network grew.

In recent days, Ethereum [ETH] It fell victim to the bearish sentiment prevailing in the market and witnessed a correction.

ETFs are coming down

However, financial institutions showed no signs of losing enthusiasm, and ETF applications continued to be submitted to the SEC.

ETF issuer ProShares has taken a big step towards launching a spot Ethereum ETF by filing an S-1 registration statement.

Coinbase Credit will act as a key partner by providing a trade credit facility to ProShares, according to the filing.

This allows ProShares to borrow Ethereum and cash for certain transactions that exceed its immediate trading balance.

Meanwhile, Bank of New York Mellon (BNY Mellon) will assume the role of transfer agent, meaning it will be responsible for processing both purchase and redemption orders for the ETF and essentially keep track of who owns the shares in the fund.

The filing also clarifies some previously announced roles, such as BNY Mellon also acting as administrator and cash custodian, and Coinbase Custody being responsible for safekeeping of Ethereum assets.

It is important to note that the application allowed for some flexibility in these roles.

BNY Mellon’s administrator role will initially be for a two-year term, renewable annually, but ProShares has the option to make changes after that period.

Similarly, the ETF can add or remove custodians of both Ethereum and cash, and can also switch its primary execution agency at any time. Interestingly, Coinbase also retains the right to step down from its role as cash custodian.

Source: X

What is the situation with ETH?

Despite the enthusiasm shown by ProShares, the price of ETH continued to fall. At the time of writing, ETH had fallen below $3,500 and was trading at $3,497.81.

Despite the large price drop, the overall trend for ETH looked mostly positive.

Read Ethereum (ETH) Price Prediction 2024-25

Since May 19, the price of ETH has been rising with higher highs and higher lows, indicating a bullish trend.

However, analysis of Santiment data by AMBCrypto revealed that ETH’s network growth is declining along with its price, indicating that new addresses are losing interest in ETH.

Source: Santiment

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