September 29, 2023

Ether Futures ETFs could all get approval at same time: Report

The United States Securities and Exchange Commission (SEC) is likely to approve multiple applications for Ether futures exchange-traded funds (ETFs) at the same time, The Wall Street Journal reported, citing sources familiar with the matter. 

Since July, the regulator has been flooded with applications from several investment firms, including requests combining futures Bitcoin (BTC) and Ether (ETH) strategies. So far, the SEC has not instructed the firms to withdraw their applications, unlike in 2021, when firms were instructed to withdraw similar applications. This suggests that the regulator won’t block the fund’s launch within a few weeks, according to WSJ sources.

At least 16 applications for Ether or Bitcoin-Ether futures ETFs are awaiting regulatory approval. Ether is the native coin of the Ethereum blockchain, used for peer-to-peer transactions within the decentralized network. A crypto futures ETF tracks the performance of crypto futures contracts. For example, instead of investing directly in Bitcoin or Ethereum, a crypto futures ETF invests in futures contracts that are tied to the price of these digital assets.

With the prospect of crypto futures approval looming, the SEC keeps receiving requests. Earlier this week, asset management firm Valkyrie filed for an Ether futures ETF and a previous application combining a Bitcoin-Ether futures strategy. Valkyrie is the first in line in this race and could see its BTC-ETH ETF debuting in early October.

In the ETF industry, first-mover advantage is important. According to the WSJ, citing data from Morningstar, the first futures Bitcoin ETF approved from ProShares has gathered $1 billion in assets under management since its inception in October 2021, while Valkyrie’s similar product, launched a few days later, amassed nearly $28 million in assets under management.

In another major decision affecting the crypto industry, the SEC has yet to decide whether to approve a spot Bitcoin ETF in the United States. Players waiting for approval include Wall Street giants Fidelity and BlackRock. According to the application’s timeline, the SEC has until January to deliver a final verdict.

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