SEC Expected to Approve Ethereum Futures ETFs

The SEC Expected to Approve Ethereum Futures ETFs

The U.S. Securities and Exchange Commission (SEC) is reportedly set to greenlight Ethereum futures exchange-traded funds (ETFs) in the coming months. The regulator is expected to approve applications from around twelve companies, including ProShares, Volatility Shares, Bitwise, and Valkyrie. These ETFs would track the price of Ethereum futures traded on the Chicago Mercantile Exchange. Specific approval dates have not been released, but some filings could receive approval as early as October. Over a dozen applications for Ethereum futures ETFs have been submitted, with Valkyrie’s dual Bitcoin and Ether Strategy ETF being first in line for a possible launch in early October.

Shift in SEC’s Approach to Crypto ETFs

The SEC has previously declined to approve any spot crypto ETFs, but there has been a shift in their approach. In 2021, the SEC approved several Bitcoin futures funds that invest in contracts trading on the Chicago Mercantile Exchange. This change in approach is reflected in the expected approval of Ethereum futures ETFs. The regulator’s views, policy, and tolerance can change over time.

Low Management Fee for Ethereum Futures ETFs

James Seyffart, an analyst at Bloomberg, highlighted that Roundhill, a hopeful for an Ethereum futures ETF, has disclosed a management fee of 0.19% for their proposed fund. This fee is significantly lower compared to Bitcoin futures ETFs like ProShares’ BITO, which has a management fee of 0.95%. The competition for lower fees in crypto ETFs has already begun.

Price Drop for Ethereum

Despite the potential approval of Ethereum futures ETFs, the price of Ethereum experienced a significant drop, reaching its lowest levels since mid-June. The market sell-off also affected Bitcoin, which dropped below $26,000. Ethereum’s price dropped to as low as $1,576 before recovering slightly. However, it remains down 7% for the day.

Hot Take: Ethereum Futures ETFs Approval Signals Changing Views

The expected approval of Ethereum futures ETFs by the SEC indicates a shift in their approach to crypto ETFs. This move follows the approval of Bitcoin futures funds in 2021. It also highlights the potential for lower management fees in the crypto ETF market. Despite the positive news, the recent price drop for Ethereum shows the volatility of the cryptocurrency market.