Report Indicates SEC Will Likely Grant Approval to Ethereum Futures ETFs by October

Unnamed insiders familiar with the situation have indicated that the U.S. Securities and Exchange Commission (SEC) is preparing to approve Ethereum futures exchange-traded funds (ETFs) within the upcoming months.

As outlined in a report by Bloomberg, these confidential sources have conveyed that the regulatory body is unlikely to impede the requests submitted by approximately twelve firms, such as ProShares, Volatility Shares, Bitwise, and Valkyrie. These companies have recently sought permission to introduce Ethereum futures ETFs.

This ETF would follow the value of Ethereum futures traded on the Chicago Mercantile Exchange, rather than offering direct exposure to the actual digital asset at its current value.

Certain submissions might be granted authorisation as soon as October, as per statements from officials; however, the specific applications that will be approved remain undisclosed. 

Eric Balchunas, an ETF analyst at Bloomberg, commented that the SEC’s greenlighting of Ethereum futures ETFs wasn’t surprising and illustrates the progression of the regulator’s stance on diverse financial instruments over the years.

As the possibility of crypto futures acceptance hovers, the SEC continues to field applications. Just this week, Valkyrie, an asset management firm, submitted a request for an Ethereum futures ETF and a prior proposal that blends a Bitcoin-Ethereum futures approach. In the race for approval, Valkyrie stands at the forefront and could witness the debut of its BTC-ETH ETF in early October.

In the domain of ETFs, being the pioneer carries significant advantages. The Wall Street Journal cites Morningstar data, revealing that the initial Bitcoin futures ETF sanctioned by ProShares has amassed $1 billion in assets under management since its inception in October 2021. In comparison, Valkyrie’s similar product, launched a few days later, has gathered nearly $28 million in assets under management.

Another crucial determination affecting the cryptocurrency sector remains pending, as the SEC deliberates on whether to endorse a spot Bitcoin ETF in the United States. Notable industry players awaiting approval encompass financial giants like Fidelity and BlackRock. 

The SEC holds until January, according to the application’s timeline, to render a final decision.

Will it cook up the perfect storm prior to the Halving?