The United States Securities and Exchange Commission (SEC) may approve the foremost Ethereum futures exchange-traded funds (ETFs). This news comes amid the rising interests of several financial giants that have filed applications with the US SEC to deploy ETF products based on cryptocurrencies, such as BTC and ETH.
Big Victory For Crypto: SEC To Greenlight Ethereum ETFs
A Bloomberg report disclosed that the SEC is showing a possible green light to approve an ETH futures ETF for institutional investors in the country. This approval could create a way for other companies, such as Bitwise, ProShares, Volatility Shares, and Roundhill, that have submitted applications to provide ETH futures ETFs.
The SEC has hesitated to approve cryptocurrency ETFs until late 2021. The commission allowed trading in funds related to Bitcoin futures contracts on the Chicago Mercantile Exchange.
Since then, there has been increasing speculation concerning the potential of an Ethereum futures product being deployed into the broader financial market. But the US financial watchdog has been slow to permit a derivatives product in the second-biggest crypto asset.
The SEC’s reason for delaying anchors on concerns about manipulating digital asset prices and insufficient liquidity.
The Cryptocurrency ETF Landscape
Many asset management companies in the US and beyond have continued pushing to launch crypto exchange-traded funds. Grayscale Investments LLC, a leading asset management firm, still awaits the US SEC’s decision to approve its application. The firm filed to convert its asset from a Bitcoin trust to a Bitcoin ETF.
It is worth noting that Grayscale reportedly announced its decision to hire more workers for its ETF team. In related news, another prominent asset management company, Valkyrie Investments, filed for an ETF based on Ethereum futures on Wednesday, August 16.
Notably, the fund will invest nearly all its assets in Ethereum exchange-traded futures, allocating a small portion to collateral investments like cash, cash-related instruments, or high-end securities.
In another development, Galaxy Digital CEO, Mike Novogratz, referenced reliable sources at Invesco and BlackRock, stating his optimism for regulators to approve a spot Bitcoin exchange-traded fund. He said that the question of approving a spot Bitcoin ETF is a “matter of time, not whether the agency will approve.”
The CEO added that institutional players are optimistic that the US financial agency will approve spot Bitcoin ETFs in less than six months. While the United States SEC delays its approval, other countries have long supported crypto ETFs.
For instance, the holding company linked to QR Asset Management QR Capital in Brazil announced an ETH ETF approval in 2021. Brazil’s securities regulatory agency, Comissão de Valores Mobiliários (CVM), approved its Ethereum $ETH ETF fund application.