U.S. SEC Ready to Approve Ethereum Futures ETF
The U.S. Securities and Exchange Commission (SEC) is reportedly on the verge of approving an Ethereum (ETH) futures exchange-traded fund (ETF), following the greenlighting of a Bitcoin (BTC) futures ETF two years ago. According to Bloomberg, the regulatory agency is expected to give the green light to the first-ever futures ETF based on ETH, the second-largest digital asset by market cap.
Key Points:
– The SEC is likely to approve the ETH-based futures products, although the specific bids that will be accepted are still uncertain.
– Companies that have filed for the ETFs include Volatility Shares, Bitwise, Roundhill, and ProShares.
– ProShares’ bid to create an ETF based on BTC futures was approved by the SEC in October 2021, making it the first of its kind.
– The SEC has rejected all bids for a spot market Bitcoin ETF so far, citing concerns about liquidity, safety, and volatility.
– Chairman Gary Gensler previously expressed openness to approving a BTC futures ETF, emphasizing the need for robust consumer protection.
Closing Paragraph:
The potential approval of an Ethereum futures ETF by the SEC marks a significant development for the cryptocurrency market. This move could provide further legitimacy and mainstream acceptance for ETH as an investment vehicle. Investors and crypto enthusiasts will be eagerly awaiting the SEC’s final decision and its potential impact on the overall market.
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