The US Securities and Exchange Commission (SEC) is reportedly considering the approval of multiple exchange-traded fund (ETF) applications for ethereum futures simultaneously, according to sources cited by the Wall Street Journal. The regulator has been receiving applications from various in vestment firms since July, including proposals to combine bitcoin (BTC) and ether (ETH) strategies. Unlike in 2021, the SEC has not directed companies to withdraw their filings, indicating a change in approach and suggesting that the launch of such ETFs might not be blocked for several weeks.
Currently, there are around 16 applications for ETFs linked to ethereum or bitcoin-ethereum futures awaiting regulatory approval. Ethereum's native currency, ether, is utilized for peer-to-peer transactions on the Ethereum blockchain. Cryptocurrency futures ETFs track the performance of futures contracts related to digital assets. Instead of investing directly in cryptocurrencies like bitcoin or ethereum, these ETFs invest in futures contracts tied to the prices of these digital assets.
With the possibility of cryptocurrency futures ETFs gaining approval, various investment firms are submitting applications. Just recently, asset manager Valkyrie submitted an application for an ether futures ETF, in addition to its previous application for a combined bitcoin- ether futures strategy. Valkyrie is at the forefront of this competition, and its BTC-ETH ETF is projected to launch in early October.
In the ETF sector, being the first to enter the market is crucial. Morningstar data cited by the Wall Street Journal reveals that the first futures bitcoin ETF, approved by ProShares in October 2021, has amassed $1 billion in assets under management. In comparison, a similar product introduced by Valkyrie just a few days later has accumulated nearly $28 million in assets.
Another significant decision that could impact the crypto industry involves the potential approval of a spot bitcoin ETF in the United States. Notable players like Fidelity and BlackRock are among the participants awaiting approval. The SEC has until January, based on the filing timeline, to make a final ruling on this matter.
