According to James Seyffart, a Bloomberg Intelligence analyst specializing in asset management and cryptocurrency, the U.S. Securities and Exchange Commission (SEC) may approve the launch of Ethereum futures exchange-traded funds (ETFs) next week. This approval could bring optimism to the crypto market.
Seyffart referenced a statement by Eric Balchunas, an ETF analyst at Bloomberg, who claimed that regulators were looking to accelerate the launch of Ether futures ETFs before a potential government shutdown on October 1. Balchunas stated that trading for the first Ethereum futures product could start on Tuesday next week.
Will Ethereum Blast Higher?
It is worth noting that the approval of Ethereum futures ETFs is speculative at this point, as Seyffart and Balchunas did not provide any sources for their claim. However, increased interest in ETH could potentially drive up its price.
In the past, the SEC has been cautious about approving cryptocurrency-related products. The approval of Ethereum futures ETFs would indicate that the regulator is becoming more comfortable with cryptocurrencies.
Since August, several financial institutions, including Volatility Shares, Bitwise, Roundhill, VanEck, Grayscale, ProShares, ARK, and 21 Shares, have filed for Ethereum ETFs. The community expects more players, such as BlackRock, a major asset manager, to join the race.
Volatility Shares was the first to apply with an Ether Strategy ETF, which tracks the price of Ethereum futures contracts on the Chicago Mercantile Exchange (CME).
Ethereum futures ETFs track the price of Ethereum futures contracts, allowing investors to gain exposure to Ethereum without directly buying or selling the cryptocurrency. This provides a more convenient and potentially less risky investment method.
Crypto Spot ETFs May Be Left Behind
While an Ethereum futures ETF approval is expected in October, Bitcoin and Ethereum spot ETFs might face delays. The SEC has announced that it will delay decisions on two Ethereum spot ETF proposals from ARK Invest and VanEck until December 26. This comes after the agency also postponed decisions on two Bitcoin spot ETF proposals.
In June, BlackRock filed an application for a Bitcoin spot ETF, indicating growing interest from institutional investors. However, the SEC has concerns about market manipulation and fraud in the cryptocurrency market, and no spot ETF proposals have been approved yet. Nevertheless, the agency is reviewing proposals for a Bitcoin spot ETF from Franklin Templeton and a mixed crypto ETF from Hashdex.
On the other hand, multiple Bitcoin futures ETFs have been approved, including the ProShares Bitcoin Strategy ETF (BITO), the Valkyrie Bitcoin Strategy ETF (BTF), and the VanEck Bitcoin Strategy ETF (XBTF).