Reports are circulating that the United States Securities and Exchange Commission (SEC) is on the brink of approving the first-ever exchange-traded funds (ETFs) rooted in Ethereum futures. This information, brought to light by Bloomberg, originates from anonymous insiders and signifies a significant triumph for numerous financial entities that have been pushing for the establishment of ETFs tied to derivatives of the world’s second-largest cryptocurrency.
The Potential Green Light for Ether Futures ETFs
The SEC is unlikely to hinder the introduction of Ether futures trading in the United States, as per these insider sources. Several firms, including ProShares, Volatility Shares, Bitwise, and Valkyrie, have recently submitted applications to list Ether Futures ETFs. These applications hinge on the approval of the SEC, which, according to Bloomberg, could be imminent.
Such an ETF would monitor the price of Ethereum futures traded on the Chicago Mercantile Exchange, as opposed to the price of Ether itself. Some of these applications might get the go-ahead as early as October, with Valkyrie’s dual Bitcoin and Ether Strategy ETF potentially being the first to launch.
Implications for the Crypto Sector
The SEC’s potential endorsement of an Ether futures ETF carries substantial consequences for the crypto industry. Crypto strategist Adam Cochran suggests that this anticipated move essentially means that the agency does not classify Ethereum as a security.
However, it’s worth noting that the SEC has so far refrained from giving its regulatory nod to any spot bitcoin or ether ETFs. It also hasn’t clarified its stance on whether it deems ether a security, although it has suggested that most crypto tokens fit the securities bill.
Market Response to Ether Futures ETFs News
Despite the positive news surrounding the potential launch of Ether futures ETFs, Ethereum experienced a significant price drop, reaching its lowest levels since mid-June. Amid a market-wide downturn that also saw Bitcoin plummet below the $26,000 mark, ETH dipped to a low of $1,576.13 before experiencing a slight rebound.
For those interested in tracking these market fluctuations and the potential impact of the approval of Ether Futures ETFs, the cryptoview.io application offers a comprehensive platform.
Start tracking your crypto investments today
