Record number of ether ETF applications flood the SEC
The United States Securities and Exchange Commission (SEC) has received a record number of applications for Ether futures ETFs in just one week, with 11 filings in total. ProShares filed the most recent application on Aug. 3, proposing an equal-weight Bitcoin and Ether ETF, aiming to track the performance of long positions in the nearest maturing monthly Bitcoin and Ether futures contracts.
Bloomberg ETF analyst James Seyffart stated that ProShares recently filed four separate applications for Ether-based ETFs, including a dual Bitcoin and Ether futures strategy ETF, a short Ether Strategy ETF, and two distinct Ether Strategy ETFs.
Volatility Shares began this wave of Ether-based ETF applications with its filing for the Volatility Shares Ether Strategy ETF on July 28. Following that, Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments all filed new Ether futures applications on Aug. 1.
However, the SEC has never approved an ETF that tracks Ether futures contracts, unlike Bitcoin futures ETFs that have been accessible since October 2021. If none of the applications gets denied, the Ether ETFs will launch 75 days from their respective filing dates. Analysts expect the Volatility Shares ETF to be launched first on Oct. 12.
The key difference between futures and spot ETF products lies in the fact that the former tracks the price of futures contracts, while the latter requires the issuer to purchase the underlying asset. Spot ETFs are widely considered more valid as they require the fund manager to buy and hold the underlying asset.
This surge in Ether-focused applications follows a flurry of filings from major asset management firms aiming to launch spot Bitcoin ETFs. Notably, BlackRock, the world’s largest asset manager, is among those seeking to offer the first spot in Bitcoin ETF in the United States.