SEC Poised to Greenlight Multiple Ether Futures ETFs Amidst Influx of Applications
The United States Securities and Exchange Commission (SEC) is reportedly on the brink of granting approval for a series of Ether futures exchange-traded funds (ETFs). The latest development, as reported by the Wall Street Journal and corroborated by sources familiar with the matter, reveals a marked shift in the regulatory stance towards digital assets.
Since the advent of cryptocurrency, discussions surrounding exchange-traded funds have been fervent, but regulatory concerns and market volatility have hampered progress. However, this tide seems to be turning as the SEC faces an inundation of applications from numerous investment firms. Notably, these applications aren’t just limited to Ether, the native coin of the Ethereum blockchain, but also encompass combined strategies involving both Bitcoin (BTC) and Ether.
UPDATE: Here’s what the #Ethereum futures ETF filings race looks like. This is a list of all filings including withdrawn AND the 16 active filings. Notice @ValkyrieFunds‘ date on $BTF currently looks to be the leader absent some action from SEC — 10/3/23 https://t.co/DgZpDVbEqO pic.twitter.com/CYEcTJnkx8
— James Seyffart (@JSeyff) August 16, 2023
As of now, at least 16 applications for Ether or Bitcoin-Ether futures ETFs are awaiting the green light from the regulatory body. This represents a noteworthy increase in interest from financial firms in offering crypto-focused investment vehicles. Such ETFs would enable investors to gain exposure to the price movements of cryptocurrencies without directly owning the underlying digital assets.
The significance of this development is underscored by the SEC’s previous stance in 2021, when investment firms were directed to withdraw similar applications. In contrast, the SEC’s current posture appears to signal a willingness to embrace these innovative financial instruments, refraining from instructing firms to retract their applications.
The reported absence of any withdrawal directives hints at the SEC’s openness to permitting the launch of these funds within a relatively short timeframe. According to sources cited by the Wall Street Journal, the regulator’s lack of intervention suggests that the Ether futures ETFs could see the light of day in a matter of weeks rather than months.
The emergence of cryptocurrency futures ETFs brings a unique investment approach to the table. Instead of purchasing digital currencies like Bitcoin or Ethereum directly, investors would engage with futures contracts linked to the performance of these cryptocurrencies. This strategy provides an alternative means for both institutional and retail investors to participate in the dynamic cryptocurrency market while potentially mitigating some of the risks associated with direct ownership.
One prominent player leading the charge in this crypto ETF race is asset management firm Valkyrie. The firm recently submitted an application for an Ether futures ETF, adding to its previous proposal that combined a Bitcoin-Ether futures strategy. Valkyrie’s strategic move positions it as a frontrunner in the endeavor, with its BTC-ETH ETF anticipated to make its debut as early as October.
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