Analysts from Bloomberg predict that Ethereum futures exchange-traded funds (ETFs) could receive approval from the U.S. Securities and Exchange Commission (SEC) as early as next week. James Seyffart, an analyst at Bloomberg Intelligence, suggests that it is “looking like the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially.” This sentiment is echoed by ETF analyst Eric Balchunas, who believes that the SEC wants to “accelerate the launch of Ether futures ETFs” ahead of the government shutdown.
To expedite the launch, various ETF filers are expected to update their documents by Friday afternoon. If these updates are successful, trading of Ethereum futures ETFs could begin as early as Tuesday next week. There are currently 15 Ethereum futures ETFs from nine different issuers awaiting approval. Some of the companies involved in proposing these ETF products include VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill.
The analysts at Bloomberg give Ethereum futures ETFs a 90% chance of launching in October. They anticipate that Valkyrie’s Bitcoin futures product (BTF) will become the first to hold Ethereum exposure on October 3. Following this, they predict that pure Ethereum futures ETFs will start trading the following week due to the actions of Volatility Shares. However, the analysts caution that not all of the ETFs awaiting approval are likely to launch.
In August, there were reports that the approval of Ethereum futures ETFs could occur in October. This news caused an 11% spike in ETH prices at the time. However, the current anticipation for crypto futures products is not as high as for spot-based alternatives. As a result, the announcement of potential ETF launches has had a minimal impact on ETH prices, which have only gained 1% on the day and are currently hovering just over $1,600.
The potential launch of Ethereum futures ETFs in the United States signifies a significant development in the crypto market. If approved by the SEC, these ETFs will provide investors with more accessible and regulated exposure to Ethereum. While there is optimism surrounding the approval of these ETFs, it remains to be seen which specific funds will make it to market. Nonetheless, the introduction of Ethereum futures ETFs is expected to contribute to the growth and maturation of the crypto industry, providing new investment opportunities for institutional and retail investors alike.