Cryptocurrency suddenly assumes a serious tone when you peer beyond the thrilling market oscillations and delve into the world of becoming regulated and structured commodity through Exchange-Traded Funds (ETFs). The latest headline-maker in the cryptoverse is the ambitious application by Volatility Shares for launching an Ether futures ETF by October 12, a significant leap from current offerings.
But the journey to this seemingly groundbreaking venture is not without a tinge of risk. As history does remind us, the U.S. Securities and Exchange (SEC) demonstrates a streak of stringent conservatism towards future-driven cryptocentric ETFs, with almost 10 previous Ethereum futures contracts ETF applications left hanging, without approval.
However, the lingering question remains – if SEC gives a green light to these innovative applications, what might ensue in the land of cryptocurrency? Firstly, given the typical 75-day timeframe from filing to ETF launch, Volatility Shares will stamp its mark as the pioneer for Ether ETFs, a riveting notion given its precedent of launching the first leveraged crypto ETF in the U.S. Secondly, the gates opened by such a decision could pave the way for a flurry of ETFs, reinforcing the increasing acceptance and gravitas of digital assets, akin to the whirlwind stirred in the wake of multiple Bitcoin spot ETF applications earlier.
Sounds like a veritable blockchain bull run? Maybe, but not everyone is on board with the party. There’s an undertow of dissatisfaction most discernible in Grayscale’s dissatisfaction towards the SEC, demanding that should any ETF be approved, all should receive the same treatment indiscriminately. Its demand for equal treatment for all applicants, regardless of the digital coin they represent, adds an interesting aside to the ongoing narrative.
Acceptance of ETFs will inevitably add another degree of seriousness to the mad, wild world of cryptocurrency, but it also comes with an undercurrent of scepticism – Are we placing too much trust in institutionalized financial structures too soon? Can the flavor of mass adoption dilute the essence of decentralization? These are the questions to ponder in an unfurling era of legitimizing what was, only a decade back, considered an adventurous folly. It’s true – if crypto goes mainstream, so does its boons and its banes.
Source: Coindesk
