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Blockchain Legislation Approved by US House Committee

Ethereum Futures ETFs Set for SEC Greenlight

Ethereum futures exchange-traded funds (ETFs) are poised to receive approval from the U.S. Securities and Exchange Commission (SEC) in the coming months, according to unnamed sources familiar with the matter. This anticipated move by the SEC signals a significant development in the accessibility of Ethereum-based investment products.

Ethereum futures around with bitcoin

As reported by Bloomberg, these confidential insiders have conveyed that the regulatory body is unlikely to hinder the requests submitted by about twelve firms, including ProShares, Volatility Shares, Bitwise, and Valkyrie. These companies have recently sought approval to launch Ethereum futures ETFs.

This ETF would track the value of Ethereum futures traded on the Chicago Mercantile Exchange, rather than providing direct exposure to the current value of the digital asset.

Some applications might receive approval as early as October, according to statements from officials; however, the specific applications set for approval remain undisclosed. 

Eric Balchunas, an ETF analyst at Bloomberg, remarked that the SEC’s approval of Ethereum futures ETFs was expected and illustrates the regulator’s evolving stance on various financial instruments over the years.

As the potential acceptance of crypto futures looms, the SEC continues to field applications. Just this week, Valkyrie, an asset management firm, submitted a request for an Ethereum futures ETF and a previous proposal that combines a Bitcoin-Ethereum futures approach. Leading the race for approval, Valkyrie could see the launch of its BTC-ETH ETF in early October.

In the realm of ETFs, being the pioneer brings significant advantages. The Wall Street Journal cites Morningstar data, revealing that the initial Bitcoin futures ETF approved by ProShares has amassed $1 billion in assets under management since its inception in October 2021. In comparison, Valkyrie’s similar product, launched a few days later, has garnered nearly $28 million in assets under management.

Another crucial decision affecting the cryptocurrency sector is pending, as the SEC considers whether to approve a spot Bitcoin ETF in the United States. Major industry players awaiting approval include financial giants like Fidelity and BlackRock. 

The SEC has until January, according to the application’s timeline, to make a final decision.

Will it stir up the perfect storm before the Halving?

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