SEC’s Approval of Ethereum Futures ETFs Inches Closer, Trading May Begin Next Week

By 0xGorki 09/28/23 5:23 AM

Ethereum futures exchange-traded funds (ETFs) may soon make their debut in the United States. Bloomberg Intelligence analyst James Seyffart has indicated that the U.S. Securities and Exchange Commission (SEC) is on the verge of permitting a wave of Ethereum futures ETFs to commence trading as early as next week. This potential move follows growing anticipation in the crypto community and among investors, eager to participate in the Ethereum market through these financial instruments.

The news emerged on September 28, when James Seyffart, an analyst with Bloomberg Intelligence, expressed optimism regarding the SEC’s stance on Ethereum futures ETFs. He remarked, “It’s looking like the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially.” Seyffart’s statement came in response to comments made by fellow ETF analyst Eric Balchunas, who suggested that the SEC was inclined to “accelerate the launch of Ether futures ETFs.”

UPDATE: Hearing the SEC wants to accelerate the launch of Ether futures ETFs (bc they want it off their plate bf shutdown) so they’ve asked the filers to update their docs by Fri pm (no small task to jam into 48hrs, esp for indie issuers), so they can go eff Mon and trade Tue. https://t.co/gKyQFK12aM

— Eric Balchunas (@EricBalchunas) September 28, 2023

Balchunas went on to provide further insight into the situation, asserting, “They want it off their plate before the shutdown.” He alluded to the looming government shutdown scheduled for October 1, at 12:01 am ET, in the event that Congress fails to reach an agreement on funding for the new fiscal year. Such a shutdown could have ripple effects across federal agencies, including financial regulators. Balchunas even indicated that the SEC had conveyed a sense of urgency, with rumors circulating that filers had been urged to update their documents by Friday afternoon, potentially setting the stage for Ethereum futures ETFs to begin trading as early as next Tuesday.

However, both analysts refrained from disclosing the sources of this latest update on the status of Ethereum futures ETFs, leaving market participants to speculate on the SEC’s exact intentions.

As of September 27, a total of 15 Ethereum futures ETFs from nine different issuers were awaiting approval. These issuers include prominent names such as VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill. Each of these companies has been actively pursuing the launch of Ethereum futures or hybrid ETF products, reflecting the growing interest and demand for cryptocurrency investment vehicles among institutional and retail investors.

The potential approval of Ethereum futures ETFs in the United States marks a significant milestone in the cryptocurrency space. While Bitcoin ETFs have garnered significant attention and even received regulatory approval in some jurisdictions, the introduction of Ethereum-based ETFs would allow investors to gain exposure to the second-largest cryptocurrency by market capitalization. Ethereum’s unique smart contract capabilities and its role in powering decentralized applications have made it a focal point of interest within the blockchain and digital asset ecosystem.

If the SEC does indeed greenlight the launch of Ethereum futures ETFs, it could signify a growing acceptance of cryptocurrencies and related financial products in the United States. This could also pave the way for a more diverse range of crypto-based investment options, potentially influencing the broader adoption of digital assets among traditional investors.