The United States Securities and Exchange Commission (SEC) is reportedly considering approving multiple applications for Ether futures exchange-traded funds (ETFs) simultaneously. This news comes after the SEC has received numerous applications from various investment firms, including proposals that combine Bitcoin (BTC) and Ether strategies. Unlike in 2021, when firms were instructed to withdraw similar applications, the SEC has not taken such action this time, indicating that the launch of these funds may not be blocked in the coming weeks.
Currently, there are at least 16 applications for Ether or Bitcoin-Ether futures ETFs awaiting regulatory approval. Ether is the native coin of the Ethereum blockchain and is primarily used for peer-to-peer transactions within the decentralized network. A crypto futures ETF is designed to track the performance of crypto futures contracts. Instead of investing directly in Bitcoin or Ethereum, a crypto futures ETF invests in futures contracts tied to the price of these digital assets.
One of the applicants leading the race is asset management firm Valkyrie, which recently filed an application for an Ether futures ETF in addition to its previous application for a Bitcoin-Ether futures strategy. Valkyrie is expected to be the first to debut its BTC-ETH ETF, possibly as early as October. The timing of being the first mover in the ETF industry is crucial, as evidenced by the success of ProShares’ first futures Bitcoin ETF. Since its launch in October 2021, it has accumulated $1 billion in assets under management. Valkyrie’s similar product, launched shortly after, has gathered nearly $28 million in assets under management.
The SEC’s decision regarding the approval of a spot Bitcoin ETF in the United States is also eagerly awaited by industry players. Wall Street giants like Fidelity and BlackRock are among those awaiting approval. The SEC is expected to deliver its final verdict by January, as per the application timeline.
The potential approval of Ether futures ETFs and the awaited decision on spot Bitcoin ETFs indicate a growing acceptance of cryptocurrencies in mainstream finance. These developments could attract more institutional investors to the crypto market, providing greater liquidity and stability.
Additionally, the approval of these ETFs could offer retail investors a more accessible and regulated way to invest in cryptocurrencies, without the need to directly hold the digital assets. It also allows investors to diversify their portfolios by adding exposure to cryptocurrencies alongside traditional assets.
Overall, the approval of multiple Ether futures ETFs by the SEC would be a significant milestone for the crypto industry, further blurring the lines between traditional finance and the digital asset space. It remains to be seen how the market will react and how these ETFs will perform, but the potential for increased adoption and growth of the crypto market is certainly a possibility.
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