Grayscale Applies for Ethereum Futures ETF as it Awaits SEC Decision
Grayscale Investments has submitted an application to the US Securities and Exchange Commission (SEC) for an Ethereum Futures Exchange-Traded Fund (ETF), following its recent partial victory against the SEC. This comes as a surprise since the asset manager had already filed a previous application for the same investment vehicle. The latest application is filed under the Securities Act of 1933, in contrast to the initial one which was filed under the Investment Company Act of 1940.
Possible Contingency Plan
The reason behind Grayscale’s action is unknown, but it could be a contingency plan in case its initial proposed Ethereum futures ETF is denied by the SEC. The proposed ETF is expected to launch in October, pending approval.
Hashdex’s Unique Application
Brazilian investment firm Hashdex has also applied for an Ethereum ETF, filing its application under the Securities Act of 1933. Hashdex plans to offer a fund that combines Ether futures contracts and a Spot Ethereum ETF, aiming to mitigate the risk of market manipulation. The firm intends to use the Chicago Mercantile Exchange (CME) to track Ethereum’s price and acquire Ether through CME Market’s Exchange for Physical transactions.
Upcoming Launches and Potential Boost for Crypto Market
If approved, these ETFs could launch within 75 days from their filing dates. Volatility Shares, Bitwise, VanEck, ProShares, and Roundhill are among the fund managers awaiting SEC approval. Volatility Shares may have a first-mover advantage with a possible October 12 launch date. The approval of an Ethereum ETF by the SEC is anticipated to bring a significant boost to the crypto market amid the ongoing bear market, with predictions of ETH’s price surpassing $2,000 upon the launch of these funds.
Hot Take: Grayscale and Hashdex Compete for Ethereum ETF Approval
Grayscale Investments and Hashdex are vying for approval from the SEC for their respective Ethereum Futures Exchange-Traded Funds (ETFs). Grayscale’s application, filed under the Securities Act of 1933, is a backup plan in case its initial proposal is denied. Meanwhile, Hashdex’s unique proposal aims to combine Ether futures contracts and a Spot Ethereum ETF to mitigate market manipulation risks. With several fund managers awaiting SEC approval, the launch of Ethereum ETFs could provide a much-needed boost to the crypto market. It remains to be seen which ETFs will be approved first and how they will impact ETH’s price.
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