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The SEC is expected to give the green light to the Ethereum futures ETF: it is expected to be listed in October as soon as possible, with a total of 16 applications pending approval
Author: Bloomberg, Cointelegraph
Compiled by: Felix, PANews
The U.S. Securities and Exchange Commission (SEC) plans to approve the listing of an ethereum futures ETF, Bloomberg reported, citing people familiar with the matter. At present, more than a dozen companies, including Volatility Shares, Bitwise, Roundhill and ProShares, have applied to launch Ethereum futures ETFs. While it was not immediately clear which funds would be approved, officials have hinted that several of the applications could be approved as soon as October, according to one of the people, who spoke on condition of anonymity. The SEC declined to comment.
While regulators have repeatedly refused to allow ETFs based on cryptocurrencies, since late 2021 the Chicago Mercantile Exchange (CME) began allowing trading of funds involving bitcoin futures contracts, speculation has grown that ETFs based on ethereum futures ( Also traded on the CME) will follow.
Eric Balchunas, senior ETF analyst at Bloomberg, said he wasn't surprised by the SEC's move to approve an ethereum futures ETF, adding that the decision shows how regulators' views on different products, such as bitcoin spot ETFs, change over time. changes over time.
According to the latest statistics from Eric Balchuna, as of August 17, there are currently 16 valid Ethereum futures ETF applications, of which the Valkyrie Bitcoin Ethereum Strategy ETF (BTF) may have the earliest resolution date of October 3, 2023.
![SEC is expected to give the green light to Ethereum futures ETF: It is expected to be listed in October at the earliest, with a total of 16 applications pending approval](https://img-cdn.gateio.im/resized-social/moments-69a80767fe-447de9b6e9-dd1a6f- 1c6801)
Still, the SEC has been slow to approve products involving derivatives of the second-largest cryptocurrency, after the U.S. SEC fought the industry over its rejection of a bitcoin spot ETF. As early as 2022, Grayscale Investments questioned the SEC's refusal to convert its bitcoin trust into an ETF application after being rejected by the US SEC for listing the company's first bitcoin spot ETF application, and subsequently filed a complaint with the SEC. Court sue. Grayscale believes that the SEC violated federal law by failing to treat Grayscale’s application and other similar applications equally.
In this regard, the US SEC believes that the proposal to list the product on NYSE Arca does not do enough to prevent fraud and manipulation. The field of cryptocurrency is full of investment risks. The US SEC expressed concern that the prices of such assets may be manipulated, liquidity may be insufficient, and the sharp fluctuations in Bitcoin prices may be unbearable for individual investors.
However, according to Twitter encryption KOL AP_Abacus, it is expected that the Court of Appeals will make a ruling on the Grayscale v. US SEC case on August 19. Most legal experts expect the verdict to favor Grayscale. Although winning the appeal does not mean that the Bitcoin ETF has been approved, it does mean that the possibility of quick approval has increased.
Although the news that the Ethereum futures ETF is expected to be approved has sparked heated discussions in the market, market confidence has been revived and the market decline has narrowed, but it is still unclear whether the downward trend of the market can be reversed in the future.
Judging from the fact that the price of bitcoin has been hovering around $29,000 after BlackRock submitted a spot bitcoin ETF application to briefly push the price of bitcoin to $31,000, the impact of such news on optimism is short-lived.
Related reading: A wave of Ethereum futures ETF applications? Inventory of seven ethereum futures ETF filing companies