Seven prominent asset management firms have submitted applications for Ethereum ETFs, suggesting a potential shift in the U.S. Securities and Exchange Commission’s (SEC) attitude towards digital assets.
The SEC has received seven applications for exchange-traded funds (ETFs) that would offer exposure to Ether futures from six issuers in recent days. Volatility Shares, the firm that launched the first 2x leveraged Bitcoin ETF (BITX) in June, was the first to apply.
Other firms, including Bitwise, Grayscale, VanEck, Roundhill, and Proshares, quickly followed. Proshares also applied for a second ETF that would allow holders to bet against Ether prices. Eric Balchunas, a senior ETF analyst at Bloomberg, suggested that these ETFs have a high chance of approval, especially following the recent launch of BITX.
This wave of applications comes after the SEC seemed to discourage applicants as recently as May. However, the recent applications suggest a potential shift in the SEC’s stance towards crypto. ETFs provide a way for retail users to speculate on digital assets without dealing with the technical complexities of crypto, which could potentially boost mainstream adoption of the sector.
While some analysts believe the SEC is softening its stance to avoid potential legal challenges from Ethereum ETF issuers, others believe the filings reflect market sentiment that the SEC is likely to approve a spot Bitcoin ETF, thus improving the chances of Ethereum ETFs. However, not everyone agrees that spot crypto ETFs are imminent, with some criticizing the futures contracts that underpin the proposed ETFs.
