Ether Futures ETFs to Get Simultaneous Approval, Report Claims
- Applications for Ether (ETH) futures exchange-traded funds (ETFs) might get approved at the same time.
- A WSJ report claims that as many as 16 ETH futures applications are pending with the SEC.
- The SEC has not asked any firm to withdraw their application, which is a positive indication.
- Earlier this week, Valkyrie filed for an ETH futures ETF and is awaiting approval.
There has been a constant rise in the number of applications submitted to the United States Securities and Exchange Commission (SEC) for crypto-related exchange-traded funds (ETFs), and the regulator has yet to work on them. At least 16 applications for Ether (ETH) or Bitcoin-Ether ETFs have been filed with the regulator, and it is expected that all of them will be approved at the same time.
According to a report from the Wall Street Journal (WSJ), since July, the SEC has been flooded with applications from several investment management firms combining futures Bitcoin (BTC) and Ether strategies. Interestingly, the securities regulator has yet to order a firm to back out and withdraw their applications, which bears a positive outlook for the applicants.
ETH is the world’s second-largest cryptocurrency by market capitalization and is the native token of the Ethereum blockchain, co-founded by Vitalik Buterin and others. The token has a current market capitalization of $200 billion, and its market dominance stands at 19%.
As the regulator hasn’t asked firms to withdraw their applications, which happened in 2021, it is clear that the SEC would not block the fund’s launch within its initial weeks. It is important to mention here that a crypto futures ETF does not follow the price action of a digital asset directly and provides a second-hand exposure to the asset to its holders.
Interestingly, as reported earlier by BitcoinWisdom, earlier this week financial services firm Valkyrie confirmed that it had filed for a Ether futures ETF with the SEC and is awaiting approval.
As per the filing, the financial services firm will purchase a number of ETH futures contracts and will not directly invest in Ether (ETH). Valkyrie further said that “Ether may be regarded as a currency or digital commodity depending on its specific use in particular transactions. Ether may be used as a medium of exchange or unit of account.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
