SEC likely to approve all Ether Futures ETFs at the same time

The United States Securities and Exchange Commission (SEC) is reportedly poised to approve multiple applications for Ether futures exchange-traded funds (ETFs) concurrently, according to sources familiar with the matter cited by the Wall Street Journal. This development comes as at least 16 applications for Ether or Bitcoin-Ether futures ETFs await regulatory approval in the United States.

Since July, the SEC has been inundated with applications from various investment firms, some of which seek to combine Bitcoin and Ether futures strategies. Unlike in 2021, when firms were instructed to withdraw similar applications, the SEC has not required these firms to withdraw their current applications. This suggests that the regulator is unlikely to impede the launch of these funds in the coming weeks, according to sources.

Ether futures ETFs track the performance of futures contracts tied to the price of Ether, the native cryptocurrency of the Ethereum blockchain. Rather than directly investing in cryptocurrencies like Bitcoin or Ethereum, these ETFs invest in futures contracts based on the digital assets’ prices.

At present, numerous firms are vying for approval of their Ether or Bitcoin-Ether futures ETFs, with at least 16 applications pending regulatory consideration. One such firm, Valkyrie, has filed for an Ether futures ETF in addition to a prior application for a Bitcoin-Ether futures strategy. Valkyrie could potentially be the first to go to market, with its BTC-ETH ETF expected to debut in early October.

In the competitive ETF industry, securing a first-mover advantage is crucial. For example, the first Bitcoin futures ETF, approved by ProShares in October 2021, has amassed $1 billion in assets under management. In contrast, a similar product launched by Valkyrie just a few days later has garnered nearly $28 million in assets under management, underscoring the importance of timing.

In a related matter, the SEC has not yet reached a decision on whether to approve a spot Bitcoin ETF in the United States. Notable financial players, including Fidelity and BlackRock, are among those awaiting approval. According to the application’s timeline, the SEC has until January to deliver a final verdict.