- According to sources familiar with the matter, the U.S. Securities and Exchange Commission (SEC) might simultaneously approve exchange-traded fund (ETF) applications based on Ether futures.
- Since July, the regulator has received applications from several investment companies, including those that combine strategies for Bitcoin (BTC) and Ether.
- Earlier this week, asset management company Valkyrie submitted an application for an Ether futures ETF that includes a Bitcoin-Ether futures strategy.
According to information from knowledgeable sources, the U.S. Securities and Exchange Commission (SEC) is likely to approve exchange-traded fund (ETF) applications based on Ether futures simultaneously.
SEC Might Give the Green Light to All ETH ETFs
The U.S. Securities and Exchange Commission (SEC), according to sources familiar with the matter, might simultaneously approve exchange-traded fund (ETF) applications based on Ether futures.
Since July, the regulator has received applications from several investment companies, including those that combine strategies for Bitcoin (BTC) and Ether. At present, the SEC has not instructed companies to withdraw their applications, which marks a departure from a change in 2021 when similar applications were instructed to be withdrawn. This suggests that the regulator will not prevent the fund from being launched in a matter of weeks, according to sources familiar with the matter.
At least 16 Ether or Bitcoin-Ether futures ETFs are waiting for regulatory approval. Ether is the native cryptocurrency of the Ethereum blockchain and is used for peer-to-peer transactions within the decentralized network. A crypto futures ETF tracks the performance of crypto futures contracts. For instance, instead of directly investing in Bitcoin or Ethereum, a crypto futures ETF invests in futures contracts tied to the prices of these digital assets.
As the likelihood of crypto futures being approved draws closer, the SEC continues to receive applications. Earlier this week, asset management company Valkyrie submitted an application for an Ether futures ETF that includes a Bitcoin-Ether futures strategy. Valkyrie is at the forefront of this race, and the BTC-ETH ETF is likely to launch in early October.
First Mover Advantage in ETF Is Crucial
In the ETF industry, having the first mover advantage is crucial. Reports suggest that the first Bitcoin futures ETF approved by ProShares has accumulated over $1 billion in assets under management since its launch in October 2021, based on data from Morningstar. Valkyrie’s similar product gathered over $28 million in assets under management a few days after its launch.
Another significant decision that impacts the crypto industry is still pending, as the SEC has not yet decided whether to approve a spot Bitcoin ETF in the United States. Wall Street giants like Fidelity and BlackRock are also among the players awaiting approval. According to the application timeline, the SEC has until January to make a definitive decision.
