The race to introduce Ethereum-focused exchange-traded funds (ETFs) in the United States has gained significant momentum as seven prominent asset managers recently submitted applications to the US Securities and Exchange Commission (SEC). These filings indicate a renewed push for Ethereum ETFs, despite earlier setbacks.
We have 7 #Ethereum Futures ETF filings from 6 Issuers. All of them are behind Volatility Shares. Key aspect here is that they are the same firm that managed to get a 2X #Bitcoin Futures ETF ( $BITX) through this SEC. https://t.co/dVpBkmtWwv pic.twitter.com/m615PS8Ssc
— James Seyffart (@JSeyff) August 2, 2023
Ethereum ETFs Rush: Asset Managers Seek Regulatory Approval
Efforts to launch Ethereum ETFs were initially halted earlier this year. However, recent developments suggest a potential change of heart within the SEC. Volatility Shares, an investment management company, initiated the movement by filing for an Ether futures ETF in late July.
In the subsequent days, heavyweights like Grayscale Investments, Bitwise, Roundhill Investments, ProShares, and VanEck followed suit, submitting their own ETF applications to the regulatory agency.
While the SEC’s apparent willingness to consider these Ether futures exchange-traded funds (ETFs) is a positive development, it doesn’t guarantee automatic approval. Analysts emphasize that although the regulator is open to discussing these products publicly, the ultimate decision is still unpredictable, and approval is not guaranteed.
Matthew Sigel, a digital assets research head at VanEck, highlighted the inconsistency of the SEC’s crypto ETF policy, stating, “SEC policy on crypto ETFs has always been haphazard. Now it is completely incoherent.”
BlackRock and Positive Sentiment Influence Shift
The landscape for crypto-related ETFs has undergone significant changes in recent months. BlackRock’s entry into spot Bitcoin ETF in June and optimism surrounding Grayscale’s legal battle with the SEC have contributed to more positive sentiment around cryptocurrency ETFs.
Experts believe these factors have shifted the winds in favor of crypto-related ETFs, prompting asset managers to vie for positions to capitalize on this emerging trend.
Among the asset managers, various strategies are being pursued. Grayscale Investments has submitted filings for both a Grayscale Global Bitcoin Composite ETF and a Grayscale Ethereum Futures ETF.
Volatility Shares intends to launch an Ether Strategy ETF that invests in cash-settled contracts referencing Ethereum trading. Meanwhile, VanEck’s proposed Ethereum Strategy ETF seeks exposure to ETH futures contracts equal to 100% of its total assets.
All the submitted ETF applications are now under review by the SEC. The regulator’s verdict on these proposals is expected in mid-October 2023. While optimism is growing due to recent developments, the final outcome remains uncertain.