With less than seven days making for an intriguing period in the crypto arena, the world of Ether seems to be gaining significant attention. A total of 11 Ether ETF applications recently made their way to the United States Securities and Exchange Commission (SEC). The ProShares ETF application, that came forth on Aug. 3, made an exciting proposition of having an equal presence of Bitcoin and Ether in their ETF tracking. This implies a keen watch on the performance of the foremost maturing monthly Bitcoin and Ether futures contracts.
A vivid picture of the Ether-based ETF rush could be seen with ProShares lodging as many as four distinct applications recently. Among those, a couple of exciting propositions have been that of a joint Bitcoin and Ether futures strategy ETF and a short Ether strategy ETF.
We see important financial entities such as Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares and Grayscale Investments, joining the brigade with Ether futures applications on Aug.1. However, it’s intriguing to note that the SEC has never given a thumbs up to an ETF tracking Ether futures contracts which does bring an element of uncertainty to the whole scenario. Yet if approved, they’ll make their launch 75 days from the respective filing dates, pushing Volatility Shares ETF into the arena first.
An intriguing distinction exists between futures and spot ETF products. The former tracks the price of futures contracts, while the latter essentially involves buying and holding the underlying asset. Unsurprisingly, Spot ETFs gain more credibility for promoting the buying and holding of assets.
Simultaneously, a set of distinct asset management firms have shown their eagerness to put forth spot Bitcoin ETFs. Among such keen enterprises is BlackRock, potentially marking its territory as the first to offer spot Bitcoin ETF in the United States.
On a somewhat apprehensive note, Ether’s legal status has garnered contrasting views. SEC chair Gary Gensler views all cryptocurrencies, apart from Bitcoin, as security. Rostin Behnam, CFTC chair, believes quite the opposite, perceiving Ether as a commodity.
So, regardless of the outcomes of such motions or court cases, the ultimate quest is to unravel regulatory clarity. As fascinating and fast-paced as crypto seems, it’s always worthwhile remembering the inherent uncertainties present. Thus, while this is an exciting phase for Ether, it is also a period of anticipation, scepticism and, above all, a desire for clear and effective regulation.
Source: Cointelegraph
