Ethereum Futures ETFs May Launch Soon, While Spot Bitcoin ETFs Face Delays
According to senior Bloomberg analyst Eric Balchunas, the Securities and Exchange Commission (SEC) is looking to expedite the approval of Ethereum Futures exchange-traded funds (ETFs) as the likelihood of a US government shutdown increases. However, the SEC remains hesitant to approve spot Bitcoin ETF applications and has recently delayed its decision on several filings.
An Upcoming Launch for Ethereum Futures ETF
Balchunas stated that the SEC has given filers 48 hours to update their applications, with a deadline of September 29th. If updated in time, the ETF products could go into effect on October 2nd and begin trading on October 3rd, 2023. Balchunas predicted in a previous tweet that there is a 90% chance Ether futures ETFs will begin trading in early October, with Valkyrie’s Bitcoin and Ether ETF likely being the first.
Valkyrie and Volatility Shares Expected to Lead
Valkyrie has applied with the SEC to modify its current Valkyrie Bitcoin Strategy ETF to include exposure to ether futures contracts. Balchunas and fellow analyst James Seyffart expect Volatility Shares to launch the first pure Ether futures-based ETF on October 12th. However, not all of the 15 Ethereum futures ETFs filed by 11 applicants are expected to launch.
Spot Bitcoin ETFs Remain Delayed
The SEC’s focus on expediting Ether futures ETFs comes ahead of a possible government shutdown. If Congress fails to pass funding legislation by September’s end, a shutdown could begin on October 1st. SEC chief Gary Gensler has already stated that if a shutdown occurs, over 90% of the agency’s employees will face unpaid furloughs. As a result, spot Bitcoin ETF applications may remain pending. The SEC has yet to approve a spot Bitcoin ETF in the US, favoring futures-based ETFs instead.
Hot Take: Uncertainty Surrounds Spot Bitcoin ETF Approval
With the SEC prioritizing Ethereum futures ETFs and the possibility of a government shutdown looming, it remains uncertain when spot Bitcoin ETFs will receive approval. Despite calls from lawmakers to approve spot BTC ETFs and criticisms of favoring futures products, the SEC has not provided a clear timeline for their decision. The delay of recent filings from Ark Invest, 21Shares, and Global X further adds to the uncertainty. As the crypto community eagerly awaits regulatory clarity, the launch of Ethereum futures ETFs may offer some optimism while leaving spot Bitcoin ETF enthusiasts in suspense.
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