Ethereum Futures ETFs May Hit the Market, Suggests Bloomberg Analyst

Ethereum exchange-traded funds (ETFs) futures might start trading in the US as soon as next week for the first time. The SEC may approve many Ethereum futures ETFs next week, according to James Seyffart, a Bloomberg Intelligence analyst, who made the statement on 28 September.

A well-known ETF researcher, Eric Balchunas, tweeted that the SEC is expediting the approval process for Ethereum futures ETFs. With plans for ETFs to begin trading as early as Tuesday and to launch on Monday, the SEC has requested applicants for ETFs to revise their applications from Friday. 

The United States SEC is working against the clock to approve many ETH futures ETFs before an approaching government shutdown, a startling turn of events. This development comes amid rising interest in bitcoin investment products and regulatory pressure on the SEC to speed up its decision-making process.

Several federal agencies, including financial regulators, are in danger due to the impending U.S. government shutdown on 1 October if Congress cannot obtain financing. According to experts, nine firms currently waiting for approval as of 27 September have 15 Ethereum futures ETFs.

Crypto’s Market Reaction on Ethereum Future ETFs

Several prominent companies in the financial sector, including VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill, have ventured into hybrid ETFs and ETH futures. These firms lead in developing crypto investment products, blending Ethereum with traditional assets for the future.

Industry analysts are expressing strong confidence, estimating a 90% probability that Ethereum futures ETFs will make their market debut in the upcoming month of October. Valkyrie’s Bitcoin futures among these offerings are poised to take the lead as it incorporates exposure from 3 October.

“We expect pure Ethereum futures ETFs to start trading the following week thanks to Volatility Shares’ actions.”

The acceleration of Ethereum futures ETF approvals may provide new opportunities for institutional and retail investors to invest in cryptocurrency. Still, it raises concerns about the SEC’s decision-making process and the scrutiny these ETFs will receive in such a run approval timeline.

“The author’s views are for reference only and shall not constitute investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”

Comments (No)

Leave a Reply