In a significant development for the cryptocurrency market, Ethereum futures exchange-traded funds (ETFs) are expected to start trading in the United States as early as next week. This news comes amidst the looming threat of a U.S. government shutdown.
Bloomberg analysts Eric Balchunas and James Seyffart have reported that the U.S. Securities and Exchange Commission (SEC) is aiming to fast-track the introduction of Ethereum futures ETFs. According to Balchunas, the SEC is keen to resolve this matter before a potential U.S. government shutdown occurs.
UPDATE: Hearing the SEC wants to accelerate the launch of Ether futures ETFs (bc they want it off their plate bf shutdown) so they've asked the filers to update their docs by Fri pm (no small task to jam into 48hrs, esp for indie issuers), so they can go eff Mon and trade Tue. https://t.co/gKyQFK12aM
— Eric Balchunas (@EricBalchunas) September 28, 2023
Analysts are Certain About Ethereum Futures ETF Approval Date
In the event that Congress does not reach a consensus or allocate funds for the upcoming fiscal year by 12:01 a.m. ET on October 1, a partial government shutdown could potentially impact the majority of non-essential functions of federal agencies, including those of financial regulators.
With this potential situation in mind, applicants for Ethereum futures ETFs have reportedly been requested to revise their documents by Friday afternoon. This could potentially allow them to commence trading as early as Tuesday, October 31.
Seyffart concurred with Balchunas’ viewpoint, implying that it seems as though the SEC is planning to approve several Ethereum futures ETFs as early as next week. However, the sources of this information were not revealed by either analyst.
— James Seyffart (@JSeyff) September 28, 2023
According to a report from September 27, there are currently 15 Ethereum futures ETFs from nine issuers pending approval from the SEC. The analysts have predicted a 90% likelihood of these ETFs being launched in October.
The analysts also predict that Valkyrie’s Bitcoin futures product (BTF) will be the first to include Ethereum exposure on October 3, with pure Ethereum futures ETFs expected to begin trading the following week due to actions taken by Volatility Shares.
However, the status of Ether spot ETFs remains uncertain. The SEC recently postponed the decision deadlines for ARK 21Shares and VanEck’s Ether spot ETF applications, citing the need for additional time to review the proposed rule change and associated issues.
At the time of writing, Ether was trading at $1,617, reflecting a 1.6% price increase in the past 24 hours, according to data provided by CoinMarketCap.