The US Securities and Exchange Commission (SEC) is reportedly in the process of permitting the launch of the first exchange-traded funds (ETFs) centered on ethereum futures, marking a significant victory for multiple firms that have long aimed to offer such products. to sources familiar with the matter, regulators are unlikely to oppose these products, which would derive from futures contracts based on the second-largest cryptocurrency. Numerous companies, including ProShares, Roundhill, Bitwise, and Volatility Shares, have applied to introduce ETFs.
The specific foundations that have received approval are yet to be identified. However, insiders have suggested that several could be finalized by October. The SEC has been refined from commenting on the matter. While the regulator has been reluctant to approve ETFs directly linked to cryptocurrencies, it began permitting trading in funds tied to bitcoin futures contracts on the Chicago Mercantile Exchange (CME) in late 2021. Speculation is growing that the forthcoming product will involve ethereum futures, which are also traded on the CME Group.
Despite the anticipation, the SEC has taken its time to sanction a product related to derivatives of the second-largest cryptocurrency, ethereum. Bitcoin, the largest cryptocurrency, holds a market capitalization of approximately $512 billion, whereas ethereum's market capitalization stands at $195 billion, based on CoinGecko data.
Concurrently, the SEC remains entangled in a dispute with the industry over its resistance to ETFs directly linked to Bitcoin. A pivotal case is underway, with a panel of federal appeals court judges in the United States set to rule on a lawsuit filed by Grayscale Investment the s . The lawsuit challenges the SEC's rejection of an application seeking to convert Grayscale's bitcoin trust into an ETF.
