The United States Securities and Exchange Commission (SEC) is reportedly poised to greenlight a series of applications for Ether futures exchange-traded funds (ETFs) concurrently, sources familiar with the matter have informed The Wall Street Journal.
Numerous investment firms have inundated the regulator with applications since July, encompassing proposals that combine futures strategies for both Bitcoin (BTC) and Ether (ETH).
Unlike in 2021, when similar applications were met with directives to withdraw, the SEC has refrained from instructing firms to retract their current submissions.
This divergence suggests that the regulatory body is unlikely to impede the imminent launch of these funds, as insiders have shared with WSJ.
A trove of at least 16 applications for Ether or Bitcoin-Ether futures ETFs is currently awaiting regulatory clearance.
Ether, the indigenous token of the Ethereum blockchain, serves as the medium for peer-to-peer transactions within the decentralized network.
A cryptocurrency futures ETF shadows the progress of cryptocurrency futures contracts.
For instance, rather than directly investing in Bitcoin or Ethereum, a cryptocurrency futures ETF invests in futures contracts pegged to the valuation of these digital assets.
Recent developments reveal an ongoing scramble to obtain approval for crypto futures.
Valkyrie, an asset management entity, is emblematic of this trend, having recently filed for an Ether futures ETF and a preexisting application integrating a Bitcoin-Ether futures approach.
As the frontrunner in this competitive endeavor, Valkyrie stands poised to introduce its BTC-ETH ETF to the market as early as October.
READ MORE:Tether Discontinues Bitcoin Omni Layer Version Due to Waning Interest
Within the ETF sector, pioneering status carries significant weight.
Data from Morningstar, as cited by WSJ, accentuates this point, illustrating that the inaugural futures Bitcoin ETF, sanctioned by ProShares in October 2021, has amassed $1 billion in assets under management.
In a similar vein, Valkyrie’s analogous product, launched shortly thereafter, has garnered nearly $28 million in assets under management.
Meanwhile, the crypto industry remains on tenterhooks, awaiting the SEC’s verdict on a prospective spot Bitcoin ETF in the United States.
Notable industry giants like Fidelity and BlackRock are among the hopefuls.
The application timeline stipulates that the SEC has until January to render a final decision that will reverberate across the financial landscape.
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