SEC is Set to Approve Ether-futures ETF

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Last Updated on August 18, 2023 by Bitfinsider

The US Securities and Exchange Commission is set to approve the first exchange-traded funds based on Ether futures, a significant victory for numerous firms that have long sought to provide the products.

According to persons familiar with the situation, the regulator is unlikely to prohibit the products, which would be based on futures contracts for the second-largest cryptocurrency. Nearly a dozen businesses have applied to launch the ETFs, including Volatility Shares, Bitwise, Roundhill, and ProShares.

It was not immediately clear which money will be approved. Officials have indicated that several might by October, according to one of the sources, who asked not to be identified because they were talking confidential information. The SEC did not respond.

The regulator has refused to authorise an ETF based solely on a cryptocurrency, but it will begin permitting trading in a fund including Bitcoin futures contracts traded on the Chicago Mercantile Exchange in late 2021. Speculation has grown that a product based on Ether futures, which are also traded on the CME, might come next.

Meanwhile, the SEC is still at odds with the industry over its opposition to Bitcoin-based ETFs. In one high-stakes case, a panel of US federal appellate court justices will rule on Grayscale Investments LLC’s lawsuit challenging the SEC’s rejection of an application to convert its Bitcoin trust into an ETF.

The SEC has claimed that the crypto industry is riddled with investment risks. The government is concerned that prices may be manipulated and liquidity may be insufficient, and that Bitcoin’s wild price swings may be too much for individual investors.

Nonetheless, some corporations, including BlackRock Inc., have lately filed applications to market Bitcoin-based ETFs. The BlackRock filing in June contributed to the token’s price rising exceeding $31,000. Since then, it has spent much of July and August hovering around $29,000. Bitcoin was trading near $26,000 on Thursday. Ether has declined around 11% this month to $1,600.

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