SEC May Soon Greenlight Ethereum Futures Products, According to Unnamed Sources
A recent report by Bloomberg suggests that the U.S. Securities and Exchange Commission (SEC) may soon approve ethereum (ETH)-based futures products. Several firms, including Valkyrie, Roundhill, Proshares, Grayscale, Vaneck, Volatility Shares, and Bitwise, have submitted applications for these products. While there are no official confirmations, insiders familiar with the matter hint that approvals could come as early as October. This news has been well-received by ETH enthusiasts, who believe it could have significant implications for the crypto market. However, the SEC’s approval of an ETH futures ETF would require accepting ETH as a commodity or currency, rather than an unregistered security.
On the other hand, Thursday saw a decline in ETH’s value following Bitcoin’s sudden drop below $26,000. In a span of 24 hours, ETH lost 6% against the U.S. dollar and 9% over the week. The cryptocurrency hit a low of $1,576 per token but experienced a slight recovery on Friday, trading at $1,681 each. Currently, ETH’s market cap is just over $201 billion, accounting for 18.3% of the overall crypto market valued at over $1 trillion.
Key Points:
- A consortium of firms, including Valkyrie, Roundhill, Proshares, Grayscale, Vaneck, Volatility Shares, and Bitwise, have applied for ETH-based futures products.
- Unnamed insiders suggest that the SEC may approve these products as early as October.
- The approval of an ETH futures ETF would require the SEC to accept ETH as a commodity or currency.
- ETH’s value declined after Bitcoin’s drop below $26,000, losing 6% against the U.S. dollar and 9% over the week.
- ETH experienced a slight recovery, trading at $1,681 each after hitting a low of $1,576 per token.
Hot Take:
If the SEC moves forward with approving ethereum futures products, it could be a significant milestone for the crypto market. This decision would not only provide more investment opportunities for ETH enthusiasts but also legitimize the asset class further. However, the recent decline in ETH’s value highlights the volatility and interconnectedness of the crypto market. Investors should remain cautious and keep an eye on market trends to make informed decisions.
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