- SEC Accelerates Ethereum Futures ETFs: Amid the risk of a government shutdown, the SEC seems determined to fast-track Ethereum futures ETFs, marking a significant milestone in the crypto market.
- Implications for Crypto Market: Approval of Ethereum futures ETFs could have profound implications for both Ethereum and Bitcoin ETFs, potentially reshaping the landscape of cryptocurrency investment in the US.
- Regulatory Uncertainty Persists: While Ethereum ETFs are gaining momentum, the SEC’s regulatory decisions this week reflect a larger climate of uncertainty in the crypto space.
As we approach early October, industry experts and analysts are growing increasingly confident in the imminent approval of an Ethereum futures product by the US Securities and Exchange Commission (SEC). If their predictions hold true, it will mark the debut of the first Ethereum futures ETF in the United States.
Observers within the exchange-traded fund (ETF) sphere are closely monitoring developments that may signal the green light for an Ethereum-based product as early as next week.
The analyst at Bloomberg Intelligence, James Seyffart, has been diligently tracking any filings that might indicate the acceleration of Ethereum futures ETFs for a launch scheduled for the coming week. Seyffart noted on September 28, “We are expecting an influx of filings from the SEC, as they strive to clear their backlog before a potential government shutdown. Normalcy appears to be on hold.”
The looming threat of a government shutdown, unless Congress reaches a spending bill agreement by the end of the month, casts uncertainty over all federal agencies, including the SEC.
Nate Geraci, President of ETF Store, shared his insights, stating that if the SEC indeed allows Ethereum futures ETFs to proceed, it would suggest that any plans to force the closure or delisting of Bitcoin futures ETFs are likely off the table. He expressed curiosity about the SEC’s response to the recent Grayscale court ruling, saying, “It seems the SEC’s only options are to permit spot Bitcoin ETFs or to find another basis for denial, possibly related to custody concerns.”
Eric Balchunas, another Bloomberg analyst, echoed the sentiment, estimating a 90% probability of Ether futures becoming available in early October. According to both analysts, there are currently 15 Ethereum futures ETFs from nine different issuers awaiting regulatory approval. These issuers include Valkyrie, VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill, all vying to launch ETH or hybrid ETF products.
Despite these developments, the SEC has seemingly operated as usual throughout the week, delaying decisions on crypto ETFs and prolonging the review process. On September 28, the regulator extended the review period for spot Bitcoin ETF applications submitted by BlackRock, Valkyrie, and Bitwise.
Seyffart added, “We anticipate similar delay orders for the remaining three Bitcoin ETF issuers—WisdomTree, VanEck, and Fidelity—before the potential government shutdown.”
Earlier in the week, the SEC also postponed its decisions on the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF until the conclusion of 2023.
In conclusion, Seyffart emphasized that the SEC‘s actions this week are primarily driven by the looming possibility of a government shutdown.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.