In what can be seen as a significant trend in the crypto world, a total of 12 applications for Ethereum futures exchange-traded funds (ETFs) have been submitted to the U.S. Securities and Exchange Commission (SEC). A series of filings from major players in the investment industry, including ProShares, Direxion, VanEck, Grayscale, Roundhill and Bitwise, await regulatory approval, potentially signaling a pivotal moment for cryptocurrency and traditional finance integration.
James Seyffart, a Bloomberg Intelligence analyst, is among the industry experts closely monitoring these filings. In a flurry of tweets, he outlined the current state of affairs, “We’re at 12. Bitwise actually filed for two ETFs. Equal weight and market weight versions of their dual Bitcoin and Ethereum futures ETFs. We’re up to a full dozen Ether futures ETF filings now.”
ProShares, in particular, has shown immense interest, with four Ethereum ETF filings, including a Bitcoin and Ether Equal Weight Strategy ETF. “This is ProShares’ fourth ETF with Ethereum futures,” Seyffart confirmed. Generally, a weighted Bitcoin and Ethereum futures ETF seems to be a hot trend. Bitwise, Proshares and Direxion LETFs are among yesterday’s filings with a dual BTC and ETH futures ETF.
Will Ethereum ETFs Get The Green Light From The SEC?
Despite the escalating interest and a flood of applications, industry analysts express skepticism about the chances of approval. “My base case is that these are withdrawn by the end of next week,” Seyffart speculated, suggesting that the firms likely had these applications ready to submit and are prepared to withdraw them if needed.
He further explained, “The firms may think that the cost of submitting a filing off the shelf and withdrawing is minuscule, especially when compared to the cost of being days or weeks behind a competitor on a first-of-its-kind launch. I’d say 75% chance these are withdrawn on gut instinct.”
Commenting on the prospective market demand, Nate Geraci, President of the ETF Store, also expressed reservations, “BTC futures ETFs have < $1.5bil AUM & much of that came in first few days post-launch. Combined BTC + ETH futures ETFs are probably the best path to succeed for now IMO. Ultimately, investors want real deal spot ETFs.”
The Ethereum futures ETFs filings follow a wave of applications for spot Bitcoin ETFs, which differ significantly in that spot ETFs require the issuer to purchase and hold the actual underlying asset. They are often considered more valid due to this inherent involvement in the cryptocurrency.
Elliott Stein, a litigation analyst, mused on a potential shift in the SEC’s stance: “If the SEC loses its case against Grayscale, as we expect, the path of least resistance would be a wave of simultaneous approvals for all spot Bitcoin ETF applicants – including Grayscale and the other eight active filings.”
As the crypto world awaits the SEC’s decision, it’s clear that the outcome could significantly affect the future landscape of crypto investments. With the evolution of financial instruments and increasing interest in digital assets, the approval of these Ethereum futures ETFs could serve as a turning point in the wider acceptance of cryptocurrencies in the traditional finance world.
At press time, the ETH price stood at $1,835.
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