Invesco Galaxy Seeks Approval for Spot Ether ETF
Mitchell Nixon
Asset management firms continue their pursuit of digital asset offerings, as reports suggest that Invesco and Galaxy Digital submitted an application for a spot Ether exchange-traded fund (ETF) on September 29.
Bloomberg ETF analyst James Seyffart shared the submission on X (formerly Twitter), despite the fact that, as of the time of writing, the application had not been posted on the SEC’s public database.
Invesco Galaxy just filed for a spot Ether ETF, I think this is the 3rd of 4th one of these, have to check tho.. pic.twitter.com/SIJVu8VzFk
— Eric Balchunas (@EricBalchunas) September 29, 2023
An Invesco spokesperson declined to verify the application, citing the customary practice of refraining from commenting on products undergoing registration. Galaxy Digital did not provide a response at the time of this report.
The application submitted jointly by Invesco and Galaxy Digital reflects the ongoing trend among investment managers who are actively pursuing regulatory clearance for spot ETH ETFs.
Mere days before this submission, specifically on September 27, the SEC opted to postpone determinations on prior ETF requests, pushing the deadline to December 26.
The SEC rationalised the extension by indicating that it required additional time for a comprehensive assessment of the proposed rule alteration and its associated matters.
While a spot Ether ETF may not be imminent, futures-based Ether ETFs could materialise in the near future, potentially as early as the upcoming week. On September 28, investment firms initiated preparations to introduce ETH futures products to their portfolios.
For instance, VanEck issued a statement concerning its forthcoming Ethereum Strategy ETF, EFUT, slated for listing on the Chicago Board Options Exchange in the imminent days.
Another player entering the arena of crypto futures ETFs is Valkyrie, an asset management firm, which will provide exposure to Ether futures through its existing Bitcoin Strategy ETF, now rebranded as the Valkyrie Bitcoin and Ether Strategy ETF.
Bitwise has entered this arena by filing an revised prospectus for its equal-weight Bitcoin and Ether futures ETF on September 28. The launch of this ETF is anticipated in the upcoming week.
Furthermore, based on Seyffart’s information, Proshares has put forward an application for a futures-based Ether ETF, while Kelly ETFs has teamed up with Hashdex to introduce their futures Ether ETFs in the near term.
These ETF introductions could potentially bring about a substantial transformation in Ethereum’s accessibility and adoption, offering investors a regulated and potentially more convenient means to access the cryptocurrency.