Ethereum Futures ETF Race Heats Up: Six Companies Vie For Approval

In the latest developments within the crypto investment landscape, it has been reported by Eric Balchunas, a prominent senior ETF analyst at Bloomberg, that six noteworthy companies have officially entered the race to launch Ethereum futures exchange-traded funds (ETFs). This significant move signals a growing interest in expanding investment opportunities within the realm of cryptocurrencies.

The companies vying for regulatory approval and subsequent issuance of Ethereum futures ETFs include Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale. These firms have submitted formal applications for their respective ETF offerings, seeking to expose investors to Ethereum futures contracts.

Strategies For Tracking Ethereum Futures Contracts

The submitted ETF proposals exhibit varying strategies and approaches for tracking Ethereum futures contracts. Below is a summary of the companies, their respective ETF tickers, strategies, and the status of their applications:

1. Volatility Shares – Ether Strategy ETF (ETHU)
   1. Derivatives-Based Replication Strategy
   2. Filing Date: 7/28/2023
   3. SEC Approval Status: Awaiting Approval, Target Date: 10/11/2023
2. Bitwise – Bitwise Ethereum Strategy ETF
   1. Futures/Derivatives-Based 1940 Act
   2. Filing Date: 8/1/2023
   3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
3. Roundhill – Roundhill Ether Strategy ETF
   1. Futures/Derivatives-Based 1940 Act
   2. Filing Date: 8/1/2023
   3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
4. VanEck – Proshares Ethereum Strategy ETF
   1. Futures/Derivatives-Based 1940 Act
   2. Filing Date: 8/1/2023
   3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
5. Proshares – Grayscale Ether Strategy ETF
   1. Futures/Derivatives-Based 1940 Act
   2. Filing Date: 8/1/2023
   3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
6. Grayscale – Grayscale Ether Strategy ETF
   1. Futures/Derivatives-Based 1940 Act
   2. Filing Date: 8/1/2023
   3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023

These applications signify the ongoing efforts by various financial institutions to introduce more accessible avenues for traditional investors to participate in the evolving cryptocurrency market. 

The anticipation now rests upon the Securities and Exchange Commission (SEC) to evaluate and approve these proposals, potentially paving the way for a new wave of Ethereum futures ETFs and broader cryptocurrency investment options for interested investors.

Meanwhile, Balchunas also introduced the world’s first billion-dollar single stock ETF, $TSLL, noting its remarkable popularity despite offering just 1.5 times exposure. Balchunas revealed that a significant portion of the asset under management (AUM) comes from appreciation, with less than half stemming from flows. 

Notably, this ETF earned a spot on the July Outliers list due to its impressive $200 million influx through Sebastien Cabral, an equity research associate for Bloomberg and Bloomberg Intelligence. This revelation underscores the evolving dynamics of ETF investing, with $TSLL emerging as a noteworthy example of substantial growth driven by both investor interest and asset appreciation.

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