Industry professionals are eagerly awaiting the launch of an Ethereum futures ETF. With two bitcoin futures ETFs already on the market and more apparently coming soon, it’s only a matter of time before they make their debut.
After launching two new bitcoin ETFs, issuers have filed to bring other crypto-based investments into this emerging market.
The launch of the Valkyrie USD Bitcoin Reference Rate ETF on Tuesday sent bitcoin futures prices soaring. And it’s now possible to invest in this volatile market with a low-risk fund. Direxion is already filing for another product that will offer managed short exposure as well.
“I don’t think that the SEC is going to divert its attention to an Ethereum ETF in the very near term,” said Trey Griggs, CEO for GSR’s US business. “But once they’ve gone through this stack of BTC devotion then I think they can very quickly turn their apparatus to an Ethereum futures-based ETF.”
Ethereum has a good history
After launching bitcoin futures contracts in 2017. derivatives marketplace CME Group launched Ether futures this year. Ethereum’s price was 4,266.68 as of about 3 p.m., according to CoinGecko.
“I believe Ethereum has enough trading history,” Griggs told Blockworks, noting that the SEC could allow a futures-based product to launch by the end of the year. “They may argue that it doesn’t, so if there is a delay, it will likely on the lack of many years of trading notes.
“Omit the analytics and the research and all the data that they need to approve an ETF.” he added.
The CME’s Ether futures volumes are currently much lower than bitcoin ones. And it is unlikely that they’ll be able to support the inflow of money an ETF could trigger.
The lack of laws clarity on whether Ethereum is or not security could mean.
Are there issuers looking to Ethereum Futures ETF?
It seems like the first fund manager underway with an Ethereum Trust is VanEck. The company filed for one in May, and WisdomTree Investments followed suit a month later. Kryptoin also made its application official last week.
Both VanEck and ProShares have filed for bitcoin futures ETFs in August. They processed the calls after both fund managers stated plans to drive Ethereum-based products.
A representative for VanEck declined to comment on the reason behind their withdrawal. And a ProShares spokesperson did not respond.
The question of whether the SEC would approve a bitcoin-based ETF has been fast nearing. The agency is still in their thoughts and considering what steps they need to take. But t’s precise they’re focusing on other products instead at this moment in time.