Analysts at Bloomberg suggest that Ethereum futures exchange-traded funds (ETFs) may receive approval and start trading in the United States as early as next week. According to James Seyffart, an analyst from Bloomberg Intelligence, “it is looking like the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially.” This news comes after Eric Balchunas, another ETF analyst, mentioned that he had heard the SEC wanted to accelerate the launch of Ether futures ETFs. The expectation is that the SEC wants to address this matter before the U.S. government shutdown, which is set to occur if Congress fails to fund the new fiscal year by October 1.
There are currently 15 Ethereum futures ETFs from nine issuers awaiting approval from the SEC. Companies such as VanEck, ProShares, Grayscale, and Bitwise are among the firms proposing an Ethereum futures or hybrid ETF product. Should these ETFs be approved, they are likely to trade in October. The analysts at Bloomberg give Ethereum futures ETFs a 90% chance of launching in October, with Valkyrie’s Bitcoin futures product (BTF) potentially becoming the first to offer Ethereum exposure on October 3. Volatility Shares’ actions are expected to facilitate the trading of pure Ethereum futures ETFs the following week.
In August, there was speculation that Ethereum futures ETFs might be approved in October, which caused an 11% increase in ETH prices at the time. However, as of now, ETH prices have only experienced a modest 1% gain, with the cryptocurrency trading just above $1,600. It is worth noting that crypto futures products are not generating as much anticipation as their spot-based alternatives, such as Bitcoin futures ETFs which have been available in the United States since 2021.
The looming U.S. government shutdown, expected to take effect on October 1 if Congress fails to agree on or provide funding for the new fiscal year, could impact the country’s financial regulators and other federal agencies. In light of this, the SEC may be seeking to handle the approval of Ethereum futures ETFs before the shutdown commences. While the sources of this news were not specified, the analysts at Bloomberg believe that ETF issuers are updating their documents by Friday afternoon, potentially gearing up for trading to begin as early as Tuesday next week.
The potential approval and launch of Ethereum futures ETFs in the United States could mark a significant development for the crypto industry. If approved, these ETFs would offer investors an alternative way to gain exposure to Ethereum, potentially attracting more institutional interest to the market. However, it remains to be seen how the SEC will proceed and which of the ETFs will ultimately be approved. Investors and market participants will be closely watching for any updates on this matter in the coming days.
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