Anticipation is mounting as Ethereum Futures ETFs prepare to secure approval from U.S. securities regulators. These innovative financial contracts enable traders to speculate on the upcoming value of an exchange-traded fund [ETF] without possessing the underlying asset, in this case- ether.
In an exclusive report by Bloomberg, a series of firms are in contention for regulatory endorsement and subsequent issuance of Ethereum futures ETFs. Notable contenders include Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale. These entities have formally submitted applications for ETFs that would center on derivatives contracts linked to ether, rather than the cryptocurrency itself.
To bring this revolution to fruition, the U.S. Securities and Exchange Commission must provide the green light—an event that Bloomberg analysts predict is on the horizon. This optimistic outlook has triggered a surge in applications from preeminent asset management firms, with the most recent entry being the Valkyrie Ethereum Strategy ETF, filed by U.S.-based AUM on August 16.
In a recent move, Volatility Shares has also thrown its hat into the Ethereum ETF arena. Pioneering a unique strategy, their proposed Ether Strategy ETF [Ticker: ETHU] is poised to invest in cash-settled Ethereum futures contracts, thereby bypassing direct involvement in the cryptocurrency itself.
Eric Balchunas, a distinguished senior ETF analyst at Bloomberg, notes that six reputable entities have officially joined the race to launch Ethereum futures exchange-traded funds. This substantial development underscores a burgeoning fascination with broadening investment horizons within the cryptocurrency domain.
Ethereum Is Up By 10%
The firms contending for regulatory approval and the subsequent rollout of Ethereum futures ETFs encompass Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale. These enterprises have meticulously submitted formal applications for their distinct ETF propositions, aiming to acquaint investors with Ethereum futures contracts.
The price of Ether, surging nearly 10% from $1,551 to $1,708, responded enthusiastically to news of the United States Securities and Exchange Commission’s impending endorsement of the inaugural exchange-traded funds based on Ether Futures.
While the SEC maintains its resistance toward spot ETFs, it has demonstrated an openness to considering ether futures ETFs. Notably, U.S.-based ETFs that possess crypto derivatives—specifically, bitcoin futures ETFs—already exist. The industry keenly awaits a verdict on the potential approval of ETFs linked to Bitcoin itself, rather than derivatives, a prospect sought after by financial giants such as BlackRock.