The SEC is reportedly accelerating Ether futures ETFs applications before a potential government shutdown.
The race toward a spot Bitcoin or Ether ETF has been a slow one. The prospect of an Ether futures ETF launching in the very near future however is a different story.
Writing on X, Eric Balchunas, as senior ETF analyst at Bloomberg, claims the US Securities and Exchange Commission (SEC) wants to accelerate the launch of Ether futures ETFs, and they could hit the market as early Tuesday.
Valkyrie is first in line for futures approval, followed by roughly a dozen other applicants, including Volatility Shares, Bitwise, ProShares, VanEck and Roundhill.
Balchunas claims the move is to resolve the matter before a potential government shutdown.
To expedite the applications, the SEC has allegedly requested that the applicants, including independent issuers, update their documentation by Friday evening – a considerable task given the 48-hour timeframe – in order to facilitate trading on the following Tuesday.
Balchunas believes that Ether futures ETFs have a 90% chance of rolling out in early October, despite spot ETFs remaining “in limbo”.
The SEC is far more comfortable with futures ETFs than spot ETFs
Unlike a spot ETF, an Ethereum futures ETF will enable investors to speculate on the future price of Ethereum without actually owning the cryptocurrency itself, providing exposure and diversification to Ethereum with less risk than direct ownership.
There are currently seven Bitcoin futures ETFs approved by the SEC, with 20 still waiting for approval.
On August 25, Cathy Wood’s $50 billion firm Ark Invest teamed up with 21Shares to file for two futures ETFs. One ETF (ARKZ) will invest a quarter of its total assets in cash-settled Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange (CME), while the other (ARKY) will encompass both Bitcoin and Ethereum futures contracts.
Grayscale also joined the race, filing its second Ether futures ETF application last week.
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