SEC Likely to Give A Nod for Ethereum Futures ETF Says Sources
Sources familiar with the matter said that the U.S. Securities and Exchange Commission (SEC) is considering to give a nod for the arrival of Ethereum futures ETFs in the market.
According to the most recent report, major financial giants including Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale, have applied to the US for listing their Ethereum futures ETFs. The news was first reported by Eric Balchunas, a senior ETF analyst at Bloomberg.
Two reliable sources familiar with the recent filings for Ether futures ETFs have stated that the SEC is prepared to openly discuss the possibility of such a product. However, it's important to note that the regulator's willingness to consider Ether futures ETFs does not guarantee their approval, as mentioned by one of the sources.
Henry Jim, a Bloomberg Intelligence analyst said: “From a product perspective, all the ETF issuers are probably thinking it’s worth the cost of filing rather than risk falling behind in case ETH [ETFs] take off, even in futures form”.
Matthew Sigel, head of digital assets research at fund group VanEck, expressed that the SEC's policy on crypto ETFs has been inconsistent in the past and is now completely unclear and confusing.
Ethereum Futures ETFs are investment tools that bundle contracts based on the future price of the cryptocurrency. With these ETFs, investors can buy shares in this package, essentially speculating on whether the future price of ETH will go up or down.
These ETFs offer a way to take part in Ethereum's price changes without actually owning the cryptocurrency. They serve as a financial tool, providing a structured approach for people who want to be exposed to potential price fluctuations in Ether. This allows them to speculate in a more controlled and organized manner.
Investing in these ETFs allows people to be a part of Ethereum's price changes without actually owning the cryptocurrency. As a financial tool, they offer a structured approach for individuals who want to be exposed to potential price fluctuations in Ether. This allows them to engage in speculation in a more controlled and organized way.
In the past, the SEC has already given approval for Bitcoin futures ETFs and seems comfortable with this product in the market. In June 2023, the SEC allowed the launch of the first leveraged bitcoin futures ETF, which was initiated by Volatility Shares.
Since Volatility Shares has been in direct communication with the SEC and played a key role in the surge of ether futures ETF filings, it raises the possibility of Ethereum futures ETFs too. Overall, the trend appears to be favoring crypto-related ETFs, and various issuers are now competing to capitalize on this opportunity.