U.S. Securities and Trade Fee (SEC) is reportedly gearing as much as approve a number of exchange-traded funds (ETFs) monitoring Ethereum futures concurrently. This transfer signifies a possible shift within the regulatory stance in the direction of digital asset-based ETFs.
Asset administration agency Volatility Shares has introduced plans to debut its ETF, which tracks futures linked to Ethereum, on October 12. This might probably mark it because the inaugural Ethereum futures ETF within the U.S. In a parallel growth, Valkyrie, one other distinguished asset administration entity, is eyeing an early October launch for its BTC-Ethereum ETF.
The SEC has witnessed a deluge of functions since July, with over 16 ETF proposals, both solely for Ethereum or mixed with Bitcoin, at the moment within the regulatory pipeline. Contrasting its 2021 strategy, the place the SEC directed corporations to retract comparable functions, the regulatory physique has shunned issuing such directives this yr. This variation hints at a extra accommodating regulatory atmosphere for such ETFs.
Distinct from direct cryptocurrency investments, a crypto futures ETF channels its investments into futures contracts pegged to the costs of digital belongings like Bitcoin or Ethereum. The ETF sector underscores the significance of the first-mover benefit. For instance, ProShares’ Bitcoin futures ETF, launched in October 2021, amassed over $1 billion in belongings below administration, whereas Valkyrie’s analogous product, launched shortly after, garnered near $28 million.
Main monetary establishments, together with Constancy and BlackRock, are eagerly awaiting the SEC’s resolution on the approval of a spot Bitcoin ETF. Echoing the sentiment round concurrent Ethereum futures approvals, Cathie Wooden, Chief Funding Officer and Portfolio Supervisor at ARK Funding Administration LLC, predicted on August 7, 2023, that the SEC would possibly greenlight a number of spot Bitcoin ETFs concurrently. Wooden shared this attitude throughout her Bloomberg interview.
