The US Securities and Exchange Commission (SEC) is on the brink of greenlighting Ether futures exchange-traded funds (ETFs), as per Bloomberg’s report. This nod from the SEC would be a pivotal moment for investors aiming to tap into the market potential of the world’s second-largest cryptocurrency.
Currently, 16 Ether Futures ETF applications are in the pipeline. The specific application that the SEC might endorse remains uncertain, but insiders hint at a potential approval come October.
Ether Futures ETF Approval: Breaking New Ground
Several financial entities, including Valkyrie Investments, Volatility Shares, Direxion, Grayscale, VanEck, Roundhill, Proshares, and Bitwise, have submitted their ETF applications. Valkyrie Investments leads the pack with its application active for 19 days.
Bloomberg’s Eric Balchunas points out that traditionally, the SEC would have prompted firms vying for Ether futures ETF approval to retract their applications within a week.
“Currently at Day 13 without any withdrawals. While it’s not a sure shot, it’s a promising indication. As anticipated, we might see these ETFs hit the market by mid-October,” Balchunas shared on Twitter.
James Seyffart, another analyst, emphasized that the longer the gap between the application submission and the SEC’s feedback, the higher the likelihood of approval.
The Divergence: Spot ETF vs. Futures ETF
While the SEC seems inclined towards the Ether futures ETF, its position on Bitcoin spot ETFs remains ambiguous. The SEC’s differential approach to futures-based and spot-based ETFs is evident.
In the past, the SEC has voiced apprehensions about potential fraudulent activities and manipulations in the BTC spot market, highlighting issues like data reliability and custody solutions. As a result, numerous spot bitcoin ETF proposals faced rejection. On the flip side, the SEC has given the nod to several futures-based bitcoin ETFs.
The inaugural Bitcoin (BTC) futures ETF made its debut in the US in 2021. Since its inception, BTC futures ETFs have garnered billions in investments. ProShares Bitcoin Strategy ETF stands out as the most significant Bitcoin ETF, boasting assets exceeding $980 million. Given the similarities between Ether Futures ETF and Bitcoin Futures ETF, the odds of its approval seem favorable.
In the wake of this development, ETH’s value surged, recovering from a preceding dip. As of this report, Ether’s trading price stands at $1686.
