Investment giants, Invesco and Galaxy Digital, are said to have entered the line of firms endeavoring to obtain regulatory acceptance for their spot Ethereum ETF. This follows information released by Bloomberg ETF analyst James Seyffart regarding their filing on September 29. Yet, this move has not been officially confirmed as the firms refrain from commenting on the products that are still in the registration process.
The application comes on the heels of SEC’s postponement on similar requests from firms like ARK 21Shares and VanEck. The US regulatory body pushed the final ruling dates to the Christmas season, stating the need for adequate time to deliberate on the proposed rule changes alongside any contingent issues. However, despite these apparent setbacks, future predictions depict an optimistic outlook.
With the industry anticipating in the unveiling of futures-based Ether ETFs as early as next week, investment companies are gearing to add these vehicles to their portfolios. Firms including VanEck and Valkyrie foresee launching futures crypto ETFs, committing to certain degrees of exposure for Eth futures, integrated as part of their existing strategies.
On one hand, the entry of Ether futures may augment the dynamic potentials of the cryptocurrency market. It bodes an access route for traditional investors to indulge in crypto-assets without the associated operational and regulatory risks. It also offers the promise of diversification and robust risk management tactics to stymie the volatility risks associated with cryptos.
Yet, on the flip side, it introduces the chances of market manipulation. As more sophisticated entities enter the realm, there’s an inevitable increase in short selling, potentially swinging price discovery. Furthermore, the debate lingers cautious on the added risk of Ether’s intended transition to Proof-of-Stake consensus that could theoretically be a curveball for both futures and spot ETF products.
The reaction to the potential debut of Ether futures is positive at $1,666 to date. Regardless of the inherent risks or the looming scepticism draped in the regulatory approval process, the market leans towards the optimistic stance. But the landscape of crypto assets, marked by its capricious nature, could sway towards unforeseen trajectories. Thus, while the emergence of Ether futures is exciting for many, others are watching with cautious optimism for how this next chapter unfolds in the ever-evolving cryptocurrency saga.
Source: Cointelegraph
