In recent months, a ripple of excitement has swept through the crypto world, with Bitcoin (BTC) spot ETF applications at its epicentre. However, trailing just behind in its wake are a series of lesser-known applications for Ether (ETH) ETFs. As it stands, as of August 10, an impressive 14 Ethereum futures ETF applications await evaluation by the U.S. Securities and Exchange Commission (SEC), surpassing the 9 Bitcoin spot ETF applications on standby.
This surge in applications arose amidst whispers regarding the SEC’s supposed “readiness” to embrace an Ether futures ETF. It’s been reported that some companies were prompted to reapply after a nudge from SEC staff, who suggested their application was ripe for review.
Yet, it seems that the cryptocurrency’s relatively young age has led to some hesitation on behalf of the SEC. In an ironic twist, firms have been encouraged to apply, only to be later informed that the approval of an Ether futures ETF was far from guaranteed. The SEC’s recent about-face has left some dubbing its messaging as “schizophrenic.”
So, why the sudden change of heart? The catalyst might have been Volatility Shares, an ETF firm that unexpectedly secured a listing for a Bitcoin futures ETF in late June, which was a sour pill for many in the crypto investment community. Critics saw this move as contradictory, given the SEC’s previous reluctance to approve seemingly less volatile crypto spot ETFs.
Interestingly, Volatility Shares pushed back against the SEC’s request to withdraw its application, arguing that its product fitted within a well-established framework and therefore did not require explicit approval. Riding on this success, the firm then submitted an Ether futures ETF application on July 28, effectively forcing the SEC’s hand.
This series of events proceeded to stimulate the SEC to inform other applicants of its readiness to assess their proposals. The unfolding drama has robustly stirred the pot amongst Bloomberg ETF analysts James Seyffart and Eric Balcunas. They have projected a convincing 75% likelihood that an Ether futures ETF could be given the green light by year’s end – a slightly higher percentage than their predicted 65% likelihood for a Bitcoin spot ETF. As the pendulum swings unpredictably in the realm of crypto regulations, eyes remain fixed on the SEC’s next move, leaving observers in heightened suspense.
Source: Cryptonews
