The United States Securities and Exchange Commission (SEC) could approve several Ethereum futures exchange-traded funds (ETFs) as early as October, according to a recent report by Bloomberg that cited people familiar with the matter.
SEC to Approve Multiple Ether Futures ETFs
An ETH futures ETF is an investment fund that tracks the price of Ethereum futures contracts. The fund allows investors to gain exposure to Ethereum without directly purchasing the crypto asset. So far, twelve companies, including Grayscale, VanEck, Volatility Shares, Bitwise, Roundhill, and ProShares, have filed with the SEC to launch the fund.
While it could not be determined which of these companies’ applications would be approved, Bloomberg stated that several would likely be approved in October.
“The regulator isn’t likely to block the products, which would be based on futures contracts for the second-largest cryptocurrency, according to people familiar with the matter,” Bloomberg said.
The price of ETH reacted to the latest news, seeing a 10% surge to trade at $1,700. However, the second-largest cryptocurrency has fallen 5% over the last 24 hours to $1,678.
If reports are accurate, the approval will be a watershed moment for the crypto industry as the SEC is yet to allow an ETH futures ETF in the U.S.
Conversely, several Bitcoin futures ETFs have been approved in the U.S. However, the SEC has yet to greenlight a spot Bitcoin ETF, citing market manipulation and volatility concerns.
Spot Bitcoin ETF Applications in Play
Prominent asset managers, including BlackRock, WisdomTree, Invesco, Valkyrie, Ark Invest, VanEck, and Fidelity, have all filed for spot Bitcoin ETFs and await approval from the securities watchdog. Investment management firm Grayscale awaits a court decision after the SEC rejected its application to convert its flagship product, Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF.
In a recent interview with Bloomberg, ARK Invest CEO Cathie Wood, predicted that the SEC will approve multiple spot Bitcoin ETFs at once if going to approve.
