Ether Futures ETFs: Multiple Approvals Expected Simultaneously, States Report
The United States Securities and Exchange Commission (SEC) is reportedly preparing to grant approval to multiple applications for Ether futures exchange-traded funds (ETFs) simultaneously. Sources familiar with the matter, cited by the Wall Street Journal, suggest that the SEC is currently reviewing numerous applications from investment firms. Notably, these applications combine futures strategies for both Bitcoin (BTC) and Ether (ETH).
It is worth noting that, unlike in 2021, the SEC has not instructed firms to withdraw their applications. This indicates that the regulator could allow these ETFs to launch in the coming weeks.
The Growing Demand for Ether and Bitcoin-Ether Futures ETFs
At present, there are at least 16 pending applications for Ether and Bitcoin-Ether futures ETFs awaiting regulatory approval. Ether, as the native cryptocurrency of the Ethereum blockchain, is commonly used for peer-to-peer transactions within the decentralized network. A crypto futures ETF tracks the performance of crypto futures contracts rather than directly investing in digital assets like Bitcoin or Ethereum. Instead, it invests in futures contracts tied to the price of these digital assets.
As the anticipation for crypto futures ETF approvals builds, the SEC continues to receive an increasing number of requests. Earlier this week, asset management firm Valkyrie filed an application for an Ether futures ETF, adding to its previous application for a Bitcoin-Ether futures strategy. Valkyrie is currently at the forefront of this race, with its BTC-ETH ETF projected to debut in early October.
It is crucial to note that in the ETF industry, being the first to bring a product to market provides a significant advantage. For instance, the ProShares futures Bitcoin ETF, approved in October 2021, has garnered $1 billion in assets under management to date. In comparison, Valkyrie’s similar product, launched a few days later, has accumulated nearly $28 million in assets under management.
The Prospects for a Spot Bitcoin ETF and the SEC’s Role
While the potential approval of crypto futures ETFs is eagerly anticipated, the SEC is still deliberating on whether to approve a spot Bitcoin ETF in the United States. Wall Street giants like Fidelity and BlackRock are among the players awaiting approval. The SEC has until January to deliver a final verdict, as per the application’s timeline.
Overall, the regulatory landscape surrounding cryptocurrencies and ETFs continues to evolve rapidly. Investors and industry insiders eagerly await the SEC’s decisions, which have the potential to shape the future of cryptocurrency investing.
With the increasing interest in cryptocurrencies and their investment potential, the approval of Ether futures ETFs could have a significant impact on the market. It would provide investors with more opportunities to gain exposure to Ether and further validate its position as a leading cryptocurrency. As the competition among investment firms intensifies to be the first to launch these ETFs, it will be interesting to see how the market responds. Stay updated with the latest news and developments in the crypto industry by visiting Uber Crypto News.