According to Eric Balchunas, a senior ETF analyst at Bloomberg, six companies, including Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale, are currently applying for Ethereum futures exchange-traded funds (ETFs).
This move showcases these companies’ desire to offer clients new investment opportunities within the evolving Ethereum ecosystem as the cryptocurrency sector matures and regulatory frameworks develop.
The potential expansion of Ethereum futures ETFs may also signal increased institutional interest and investment in Ethereum.
Prior to the drive for Ethereum-based ETFs, there has been a quest for a Bitcoin exchange-traded fund (ETF) since 2013. ETFs track the value of an asset, and a Bitcoin ETF would allow investors exposure to Bitcoin without the need to hold cryptocurrency directly.
While Bitcoin ETFs have been successful in other countries such as Canada, Brazil, and Dubai, the U.S. SEC has consistently rejected spot Bitcoin ETF applications in the U.S., citing concerns about market manipulation among cryptocurrency traders.
In recent times, several companies, including BlackRock, WisdomTree, Invesco, Valkyrie, Ark Invest, VanEck, Fidelity/Wise Origin, and Grayscale, have filed applications for a Bitcoin ETF with the SEC.
BlackRock’s application for a spot market ETF, followed by other firms, helped pump Bitcoin’s price above $30,000 while Ether surpassed $1,900 in June 2023. The SEC raised concerns about the clarity of the applications, prompting some companies to refile with clarifications.
Although the SEC initially rejected several of the applications made, it has accepted them again and placed them under review.
It appears that institutional investors are poised to enter the crypto market via the two most valuable cryptocurrencies in the world by market capitalization and price – Bitcoin and Ether.
The question now remains, will the SEC approve an Ether ETF, or will there be delays similar to those experienced by the Bitcoin counterparts? And if approved, will this be a boost for the next bull run?
