In recent times, the crypto world has witnessed a notable trend as 12 applications for Ethereum futures exchange-traded funds (ETFs) have been submitted to the U.S. Securities and Exchange Commission (SEC). This surge in filings comes from prominent names in the investment industry, including ProShares, Direxion, VanEck, Grayscale, Roundhill, and Bitwise. If approved, this move could signify a crucial moment for the integration of cryptocurrencies and traditional finance.
Among those closely observing the developments is James Seyffart, an analyst from Bloomberg Intelligence. He reported that there are now 12 Ether futures ETF filings, with Bitwise contributing two ETF filings for equal and market-weight versions of their dual Bitcoin and Ethereum futures ETFs. ProShares, in particular, has shown remarkable interest by submitting four ETF filings for Ethereum, including a Bitcoin and Ether Equal Weight Strategy ETF.
Despite the flurry of applications, industry analysts remain skeptical about the likelihood of approval. Seyffart speculates that the firms may have these filings ready to submit and might withdraw them if necessary. The cost of submission and withdrawal is minimal compared to the risk of falling behind competitors on a pioneering launch. Therefore, Seyffart estimates a 75% chance that some of these filings may be withdrawn.
Market Demand and Concerns
Nate Geraci, President of the ETF Store, expressed reservations about the potential market demand for these ETFs. While Bitcoin futures ETFs have seen some success, combining Bitcoin and Ethereum futures ETFs might be the better path to succeed at the moment. Investors are ultimately interested in real spot ETFs that involve purchasing and holding the actual underlying asset, making them more valid in the cryptocurrency market.
The filings for Ethereum futures ETFs follow a wave of applications for spot Bitcoin ETFs, which differ significantly as they require the issuer to hold the actual underlying asset. Elliott Stein, a litigation analyst, speculated that if the SEC loses its case against Grayscale, it could lead to simultaneous approvals for all spot Bitcoin ETF applicants, potentially changing the regulatory landscape.
Awaiting the SEC’s Decision
As the crypto world awaits the SEC’s decision on these ETF filings, it’s evident that the outcome could significantly impact the future of crypto investments. The approval of Ethereum futures ETFs could be a crucial turning point, further paving the way for wider acceptance of cryptocurrencies in the traditional finance world.