Ethereum Futures ETFs: A Look at Recent Applications
Recently, there have been six Ethereum futures ETFs submitted for SEC approval. On July 28, Volatility Shares applied for an “Ether Strategy ETF,” and on August 1, four more applications were filed by Bitwise, Roundhill, VanEck, and Proshares. Grayscale also refiled its ETHG application, bringing the total to six. The Volatility product is set to have the first decision on October 11, while the others will be decided on October 16. However, there is a high likelihood that the SEC will delay or deny these applications. Expert James Seyffart believes that there is a 75% chance they will be withdrawn soon, as the cost of submitting and withdrawing is minimal compared to being behind competitors.
The SEC, led by Chair Gary Gensler, has shown a strong opposition to crypto-related investment products. Gensler considers every digital asset, except Bitcoin, to be a security. As a result, Seyffart expects the SEC to fight against anything non-Bitcoin related. The next couple of weeks will be crucial in determining the fate of these ETF applications.
Despite the developments in ETF applications, the price of Ethereum has remained relatively stable. It has been trading within a range-bound channel and recently recovered yesterday’s losses to reach a price level of $1,860. Since mid-June, Ethereum has shown minimal movement, fluctuating between $1,700 and $2,000.
Hot Take
The increasing number of Ethereum futures ETF applications indicates a growing interest in expanding investment options for crypto investors. However, the SEC’s strong stance against non-Bitcoin related assets poses a significant challenge for these applications. While there is a possibility of them being withdrawn, it remains to be seen how the SEC will handle these filings. The next few weeks will provide valuable insights into the regulatory environment surrounding cryptocurrency investments.
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