- Six companies are now awaiting approval from the U.S. Securities and Exchange Commission (SEC) for Ethereum futures ETFs.
- Investors will be able to invest in futures contracts of the second largest asset in the crypto market through these exchange-traded funds.
- The SEC has previously expressed that futures ETFs in the crypto space are much safer than spot products.
The number of companies seeking approval from the SEC for Ethereum futures ETFs has reached six, providing investors with a new way to invest in the second largest asset in the crypto market. The SEC has previously stated that these types of ETFs are safer than spot products in the crypto space.
Increasing Interest in Ethereum Futures ETFs
According to information provided by Bloomberg’s chief ETF analyst, Eric Balchunas, who cited another analyst from the company, James Seyffart, six companies are now awaiting approval from the SEC for Ethereum futures ETFs. These applications were submitted on August 1, following the application made by Volatility Shares for their Ether Strategy ETF on July 28.
Companies Applying for Ethereum Futures ETFs
The companies that have submitted applications for Ethereum futures ETFs include Bitwise with their Ethereum Strategy ETF, Roundhill with their Ether Strategy ETF, VanEck with their Ethereum Strategy ETF, ProShares with their Short Ether Strategy ETF, and Grayscale with their Ethereum Futures ETF. This shows a growing interest in the crypto market and the potential for Ethereum futures contracts.
SEC’s Stance on Crypto ETFs
The SEC has been hesitant to approve spot ETF products in the crypto space due to concerns about investor protection and market manipulation. However, the recent application from BlackRock for a Bitcoin spot ETF, which included a price tracking clause, has led to speculation that the SEC may approve this request. SEC Chairman Gary Gensler has previously stated on several occasions that futures ETFs in the crypto space are much safer than spot products.
Conclusion
With the increasing interest in Ethereum futures ETFs, it’s clear that investors are looking for new ways to invest in the crypto market. The SEC’s potential approval of these ETFs could open up new opportunities for investors and further legitimize the crypto market. However, it remains to be seen how the SEC will respond to these applications and whether they will approve them.
