According to a recent statement by James Seyffart, a Bloomberg Intelligence analyst with expertise in asset management, including cryptocurrency, the U.S. Securities and Exchange Commission (SEC) is considering approving the launch of Ethereum futures exchange-traded funds (ETFs) next week.
Approval of an Ethereum futures ETF could boost optimism in the crypto market.
The ETF expert quoted another statement made by Eric Balchunas, also an ETF analyst at Bloomberg. In his post, Balchunas said he heard that the securities regulators looked to accelerate the launch of Ether futures ETFs before the upcoming government shutdown.
He added that the first Ethereum futures product could start trading on Tuesday next week.
Will Ethereum Blast HIgher?
The US government may shut down on October 1 due to Congress’s inability to reach an agreement on funding for the upcoming fiscal year. This could affect many federal agencies, including the SEC.
While the potential approval of Ethereum futures ETFs is a positive sign, this development remains speculative as the two analysts did not cite any sources for their claim. With more interest in ETH, the price may rise.
The SEC has been cautious about approving cryptocurrency-related products in the past, but the approval of Ethereum futures ETFs would suggest that the regulator is becoming more comfortable with the cryptocurrency.
Since August, a number of financial institutions have filed for Ethereum ETFs including Volatility Shares, Bitwise, Roundhill, VanEck, Grayscale, ProShares, ARK, and 21 Shares. The community expects more players to join the race, especially BlackRock, a giant asset manager.
Volatility Shares was the first to join the race with an Ether Strategy ETF application. Filed on July 28, the ETF will track the price of Ethereum futures contracts on the Chicago Mercantile Exchange (CME).
Ethereum futures ETFs are exchange-traded funds that track the price of Ethereum futures contracts. The futures contracts are agreements to buy or sell Ethereum at a predetermined price on a future date.
Ethereum futures ETFs allow investors to gain exposure to the price of Ethereum without having to buy and sell the cryptocurrency directly. This can be a more convenient and less risky way to invest in Ethereum.
Crypto Spot ETFs May Be Left Behind
The Securities and Exchange Commission (SEC) is expected to approve an Ethereum futures ETF in October, but Bitcoin and Ethereum spot ETFs may have to wait.
The SEC announced today that it has delayed its decision on two Ethereum spot ETF proposals from ARK Invest and VanEck until December 26. This comes after the agency delayed its decision on two Bitcoin spot ETF proposals from ARK Invest and Global X earlier this week.
In mid-June, BlackRock, the world’s largest asset management company, filed an application to register a Bitcoin spot ETF with the SEC. This move sent the crypto market buzzing, as it signaled that major institutional investors are becoming more interested in cryptocurrencies.
The approval of a spot Bitcoin ETF would be a major milestone for the cryptocurrency industry. Many experts believe that an approval will be imminent. If successful, this could make Bitcoin more accessible to a wider range of institutional investors.
The SEC has not yet approved any spot ETF proposals due to concerns about the risk of market manipulation and fraud in the cryptocurrency market. However, the agency has begun reviewing Franklin Templeton’s Bitcoin spot ETF proposal and Hashdex’s mixed crypto ETF proposal.
On the other hand, multiple Bitcoin futures ETFs have been approved. The first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), was approved in October 2021. The agency has since approved several other Bitcoin futures ETFs, including the Valkyrie Bitcoin Strategy ETF (BTF) and the VanEck Bitcoin Strategy ETF (XBTF).