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  • Writer's pictureSarah Dixon

"11 Ethereum ETF filings in one week heat up race"


"11 Ethereum ETF filings in one week heat up race"
"11 Ethereum ETF filings in one week heat up race"

In the past week, the United States Securities and Exchange Commission (SEC) has received a significant number of applications for Ethereum (ETH) Exchange-Traded Funds (ETFs). Currently, there are 12 applications, with the most recent one being submitted by ProShares, a well-known fund manager. ProShares has filed four applications for Ether-based ETFs, including a dual Ether and Bitcoin futures strategy ETF, an Ether Strategy ETF, and a short Ether Strategy ETF.


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Will The SEC Approve An Ethereum Futures ETF?

Several asset management companies, including Volatility Shares, ProShares, Roundhill Financial, Bitwise, Van Eck, and Grayscale Investment, have submitted applications for ETFs tracking Bitcoin and Ether. ProShares' most recent application, filed on August 3, proposes an equal-weight Bitcoin and Ether ETF to measure the performance of holding long positions in the nearest maturing monthly Ether and Bitcoin contracts. However, the Securities and Exchange Commission has never approved an ETF that tracks Ether Futures contracts, unlike Bitcoin Futures ETFs that have been around since October 2021. While these applications have generated optimism, it remains to be seen if they will be approved. Some experts argue that these asset management companies are taking a gamble in hopes of being the first to offer an Ethereum ETF in the United States.


ETH price holds steady above $1,830 amid ETF race | Source: ETHUSD on Tradingview.com
ETH price holds steady above $1,830 amid ETF race | Source: ETHUSD on Tradingview.com

The likelihood of receiving the SEC’s approval remains slim as the regulatory body has never approved an Ethereum futures ETF filing. Add to the mix the consistent refusal of SEC’s Chair, Gary Gensler, consistent refusal to answer if the agency considers ETH a security. This has further compounded regulatory uncertainty around the network.


If none of the applications before the SEC get denied, the Ether ETFs will launch 75 days from their respective filing dates. Analysts expect the Volatility Shares ETF to lead the charge on 12th October.


Understanding The Difference Between Futures And Spot ETF Products

Futures and spot ETF products differ in their tracking methods. Futures ETFs track the price of futures contracts, while spot ETFs require the fund manager to purchase and hold underlying assets, making them more valid. Currently, there is a surge in Ether-based applications due to asset management companies such as BlackRock filing for the first spot in Bitcoin ETF in the US. The SEC's decision on these applications will likely impact the attractiveness and accessibility of crypto investments, especially for larger institutional investors.


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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