Could All Ether Futures ETFs Get Approved At Once?

Ether Futures ETFs Approval

The United States Securities and Exchange Commission (SEC) is likely to grant multiple applications for Ether futures exchange-traded funds (ETFs) simultaneously, according to sources familiar with the matter, as reported by the Wall Street Journal. Since July, the regulator has been inundated with requests from different investment firms, including a combination of Bitcoin (BTC) and Ether strategies. The SEC has not yet instructed the firms to withdraw their applications, a change from 2021 when firms were asked to withdraw similar applications. This implies that the regulator won’t prevent the fund’s launch in the coming weeks, as informed by the WSJ sources.

At least 16 applications for Ether or Bitcoin-Ether futures ETFs are waiting for regulatory approval. Ether is the native coin of the Ethereum blockchain, used for peer-to-peer transactions within the decentralized network.A crypto futures ETF tracks the performance of crypto futures contracts. For instance, instead of investing directly in Bitcoin or Ethereum, a crypto futures ETF invests in futures contracts that are linked to the price of these digital assets.

With the expectation of crypto futures approval imminent, the SEC continues to receive requests. Earlier this week, asset management firm Valkyrie submitted an Ether futures ETF in addition to a previous application combining a Bitcoin-Ether futures strategy. Valkyrie is the first to enter this race, and its BTC-ETH ETF could possibly debut in early October.

In the ETF sector, the power of being the first to act is paramount. According to the Wall Street Journal citing data from Morningstar, ProShares’ first Bitcoin ETF, launched in October 2021, has already accumulated $1 billion in assets under management, while Valkyrie’s similar product, launched a few days later, has amassed nearly $28 million in assets under management.

In another significant development for the crypto industry, the SEC is yet to decide whether it will approve a spot Bitcoin ETF in the United States. Major players, such as Fidelity and BlackRock, are waiting for the ruling. As per the timeline of the application, the SEC has until January to come up with a definitive answer.