The United States Securities and Exchange Commission (SEC) is reportedly gearing up to approve multiple applications for Ether futures exchange-traded funds (ETFs) simultaneously, marking a significant development in the cryptocurrency investment landscape.
According to sources familiar with the matter cited by The Wall Street Journal, the SEC has been inundated with applications from various investment firms since July, with some of these requests combining futures strategies for both Bitcoin and Ether.
Notably, the SEC has refrained from instructing these firms to withdraw their applications, a notable departure from its actions in 2021 when similar requests were met with such directives. This lack of opposition suggests that the regulator is unlikely to obstruct the launch of these funds in the coming weeks.
Currently, there are at least 16 applications for either Ether or Bitcoin-Ether futures ETFs awaiting regulatory approval. Ether, the native cryptocurrency of the Ethereum blockchain, is primarily utilized for peer-to-peer transactions within the decentralized network. A crypto futures ETF, on the other hand, tracks the performance of cryptocurrency futures contracts rather than directly investing in the underlying digital assets. This approach allows investors to gain exposure to the price movements of cryptocurrencies through futures contracts.
As the possibility of crypto futures ETF approval looms, the SEC continues to receive a steady stream of requests. One prominent player in this race is asset management firm Valkyrie, which recently filed for an Ether futures ETF along with a previous application that combines a Bitcoin-Ether futures strategy. Valkyrie is positioned at the forefront of this competition and could potentially see its BTC-ETH ETF debut as early as October.
In the world of ETFs, being the first to market carries significant advantages. A case in point is the first Bitcoin futures ETF approved by ProShares in October 2021, which swiftly accumulated $1 billion in assets under management. In comparison, Valkyrie’s similar product, launched just a few days later, amassed nearly $28 million in assets under management. In a parallel development with substantial implications for the cryptocurrency industry, the SEC is still deliberating on whether to approve a spot Bitcoin ETF in the United States.
Several major players, including Wall Street titans Fidelity and BlackRock, await this decision. According to the timeline set by the application, the SEC has until January to render a final verdict. This decision could potentially open new doors for investors looking to gain direct exposure to Bitcoin through ETFs.