At least 16 requests for Bitcoin-Ether or Ether futures ETFs are pending regulatory approval in the US. The Wall Street Journal reported, citing persons familiar with the situation, that the United States Securities and Exchange Commission (SEC) is expected to approve numerous applications for Ethereum futures exchange-traded funds (ETFs) at the same time.
Since July, the agency has received a tonne of applications from different financial firms, including requests combining futures Bitcoin (BTC) and Ether strategies. In contrast to 2021, when businesses were told to withdraw comparable petitions, as of right now, the SEC has not given the organisations instructions to do so.
In light of this, the WSJ sources believe that the regulator won’t prevent the fund’s launch within a few weeks.
Ether or Bitcoin-Ether futures ETF applications totaling at least 16 are pending regulatory approval. For peer-to-peer transactions within the decentralised network, Ether is the native currency of the Ethereum blockchain. An exchange-traded fund that follows cryptocurrency futures contracts tracks their performance. A crypto futures ETF, for instance, invests in futures contracts that are linked to the price of Bitcoin or Ethereum rather than buying those digital assets outright.
The SEC continues to receive inquiries as the possibility of approving cryptocurrency futures approaches. In addition to an earlier application combining a Bitcoin-Ether futures strategy, asset management company Valkyrie filed for an Ether futures ETF earlier this week. In this competition, Valkyrie is first in line and may launch its BTC-ETH ETF in early October. First-mover advantage is crucial in the ETF sector.
The first futures Bitcoin ETF approved by ProShares has amassed $1 billion in assets under management since its launch in October 2021, according to the WSJ, citing data from Morningstar. By comparison, Valkyrie’s comparable product, launched a few days later, amassed nearly $28 million in assets under management.
The SEC has not yet decided whether it will allow a spot Bitcoin ETF in the United States, another significant move that will have an impact on the cryptocurrency market. Wall Street behemoths Fidelity and BlackRock are among those awaiting permission. The SEC has until January to provide a decision, as per the application’s timeframe.