Ethereum ETFs Heat Up As Filings With SEC Climbs To Six
03 August 2023 - 6:00AM
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The latest sign of crypto going mainstream among traditional
investors is the race heating up to launch the first
exchange-traded fund (ETF) tied to Ethereum futures. In recent
weeks, six companies have filed proposals with the Securities and
Exchange Commission (SEC) to launch Ethereum futures ETFs.
The Race To Launch An Ethereum Futures ETF Cryptocurrency ETFs
track the price of the digital currencies they are tied to and they
are not a new thing in the crypto industry. Bitcoin futures have
gained popularity in recent years and are already being offered by
popular investment companies. However, with bitcoin futures
ETFs now established, it is only natural for the next hot product
to be an Ethereum futures ETF. So far, more than 10 Ethereum
futures ETFs have been filed in the past, but none have been
approved by the SEC. Related Reading: BlackRock CEO Larry Fink Is
The Best Thing To Happen To Bitcoin, Mike Novogratz Says Volatility
Shares Ether Strategy ETF was the first to be filed on July 28.
Since then, Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy
ETF, VanEck’s Ethereum Strategy ETF, and Proshares Short Ether
Strategy ETF have been filed and are awaiting clearance, as
reported by Bloomberg Intelligence. Now, Grayscale
Investments is also looking to join the pack with its new Ethereum
Futures ETF filing. After withdrawing its filing earlier due to SEC
concerns, the digital currency asset management company is now back
with a better application. Bitwise, another crypto index fund
manager, also withdrew its previous filing at the same time.
ETH price jumps to $1,839 | Source: ETHUSD on Tradingview.com
According to the filing, the majority of the Grayscale Investments
fund’s assets would be placed in Ether futures contracts with
“front-month” maturities, which have “the shortest time to
maturity.” The company also intends to diversify into other
Ethereum contracts in the coming future. Why Ethereum Futures
ETFs Are Gaining Traction The buzz around crypto ETFs was recently
ignited by the news of BlackRock and other investment companies
filing applications with the SEC for Spot Bitcoin ETFs. However,
the SEC is still yet to give the go-ahead, citing failure to meet
anti-fraud and investor protection standards in past
applications. Analysts report that BlackRock’s Bitcoin ETF
could unlock $30 trillion worth of wealth. Of course, there’s no
guarantee if or when they may get the green light. Related Reading:
Here’s The Total Number Of XRP That Ripple Currently Holds For
crypto investors and the industry, an Ethereum futures ETF would no
doubt be a game changer. If approved, Ethereum futures would become
available to investors 75 days after the application date. It would
provide an easy, low-cost way for investors of these investment
companies to gain exposure to the second-largest cryptocurrency by
market cap. As for ETH’s spot price, it has been struggling
to break above $2,000 this year. At the time of writing, ETH is
trading at $1,843.96. But if the filings are approved by the SEC,
it may signal the beginning of the next Ethereum bull run. Featured
image from iStock, chart from Tradingview.com
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