Bloomberg analysts predict Ethereum futures ETFs may soon begin trading.

Bloomberg analysts predict Ethereum futures ETFs may soon begin trading.

Ethereum Futures ETFs Could Launch Next Week in the United States

The blockchain industry is abuzz with the news that Ethereum futures ETFs may start trading as early as next week in the United States. This revelation comes after the US Securities and Exchange Commission (SEC) postponed decisions on Ark Invest and VanEck’s spot ETF applications for Ethereum. Bloomberg analysts have shared insights into why this acceleration is happening and what it could mean for the industry.

The SEC’s Motivation for Fast-tracking Ethereum Futures ETFs

According to Bloomberg Analyst Eric Balchunas, the SEC is seeking to expedite the launch of Ether futures ETFs to remove this task from their agenda before a potential US government shutdown. As Congress grapples to pass spending bills for the coming fiscal year, there is a chance of a partial government shutdown starting from October 1. To prepare for this scenario, various Ethereum futures ETF applicants have been requested to update their documents by Friday afternoon to enable trading as early as Tuesday, October 3.

James Seyffart, another Bloomberg ETF analyst, corroborated Balchunas’ claims, suggesting that the SEC may indeed green-light several Ethereum futures ETFs next week. It is important to note that the analysts did not disclose their sources for this information.

The Landscape of Ethereum Futures ETFs

According to previous reports by Bloomberg analysts, there are currently 15 ETH futures ETFs awaiting approval from the SEC. These applications come from at least nine different issuers. Balchunas and Seyffart put forward a 90% probability of these Ethereum futures ETFs launching in early October.

In their analysis, they stated, “We expect pure Ethereum futures ETFs to start trading the following week thanks to Volatility Shares’ actions. Valkyrie’s Bitcoin futures ETF (BTF) is poised to become the first to hold Ethereum exposure on October 3 after a strategy change.”

The upcoming launch of Ethereum futures ETFs presents an opportunity for investors to gain exposure to Ether through a regulated and traditional investment vehicle. This move also diversifies the current range of offerings in the cryptocurrency ETF market and expands investment options for individuals.

Spot Ethereum ETFs in Limbo

While the excitement around Ethereum futures ETFs continues to build, the SEC has postponed its decisions on proposed Ethereum spot ETFs. The deadlines for ARK 21Shares and VanEck’s Ether spot ETF applications have been extended. The SEC justified this extension by stating the need for additional time to consider the proposed rule change and the related concerns.

These delays have only intensified the anticipation surrounding the approval of an Ethereum spot ETF. If approved, an Ethereum spot ETF would likely have a positive impact on the price of Ether. The cryptocurrency has faced challenges and volatility in recent weeks, hindering its progress. As of now, Ether is valued at $1,617, having experienced a 1.6% price surge in the past 24 hours.

Ethereum price shows signs of recovery on the daily timeframe

Figure: Ethereum price shows signs of recovery on the daily timeframe

The potential launch of Ethereum futures ETFs brings hope for a revival in the Ether market. Traders and investors eagerly await the SEC’s decision on the spot ETFs, which could provide a further boost to the cryptocurrency’s value.

In conclusion, Ethereum futures ETFs may soon become a reality in the United States. The SEC’s intention to expedite their launch indicates a sense of urgency to address these applications before a possible government shutdown. As the regulatory landscape evolves, the blockchain industry eagerly anticipates how these developments will shape the future of blockchain-based financial products. Whether it be through futures ETFs or spot ETFs, increasing mainstream access to Ethereum is a positive step that may contribute to its continued growth and adoption in the wider financial world.

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