The Securities and Exchange Commission (SEC) of the United States is set to approve numerous applications for Ether futures exchange-traded funds (ETFs). As the market sees a rise in interest from financial firms looking to enter the booming crypto ecosystem. Sources reveal 16 Ether or Bitcoin-Ether futures ETF applications awaiting regulatory approval. The situation is closely watched.
In contrast to last year, when the SEC instructed the withdrawal of similar applications, it has refrained from such action this time.This means that the regulatory body is leaning toward enabling these funds to go live in the coming weeks. Applications surged in July, overwhelming the SEC with proposals from investment firms combining Bitcoin and Ether futures strategies.
The native coin of the Ethereum blockchain, Ether, finds extensive use for peer-to-peer transactions within its decentralized network. A crypto futures ETF tracks futures contracts tied to digital asset prices like Bitcoin and Ethereum. It aims to reflect performance. This method allows investors to invest in cryptocurrencies without owning the underlying assets.
Ether ETFs: Valkyrie’s Application and SEC’s Decisions Shape Crypto Investment Landscape
Market participants are eagerly following the SEC’s actions since it has the ability to drastically change the bitcoin ETF landscape. Valkyrie, an asset management firm, is leading this race. It just applied for an Ether futures ETF and a Bitcoin-Ether futures strategy hybrid. If approved, Valkyrie might debut its BTC-ETH ETF as soon as October, establishing itself as a pioneer in the nascent industry.
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 This is a list of all filings including withdrawn AND the 16 active filings.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
ProShares, which received clearance for the first Bitcoin futures ETF in October 2021, exemplifies the importance of being a first mover. Since its launch, the fund has quickly garnered $1 billion in assets under management. Similarly, immediately after its inception, Valkyrie’s comparable product amassed roughly $28 million in assets under management.
Meanwhile, the SEC is deliberating over the approval of a spot Bitcoin ETF in the United States, which is another key decision. Fidelity and BlackRock, two industry titans, are keenly awaiting this verdict. The SEC has until January to provide its final decision, according to the application’s timeframe.
The Bitcoin industry is fast changing, with traditional financial companies pushing for a presence. The SEC’s decisions will impact the crypto ETF market’s future and mainstream investor access, considering the complexity of novel investment vehicles. Market participants anticipate the regulatory outcome, which could usher in new investment opportunities within the digital asset realm.