In the midst of the growing excitement around Bitcoin (BTC) spot ETF applications, a parallel surge of Ethereum (ETH) futures ETF applications is quietly gaining momentum. As of August 10, there are 14 different Ethereum futures ETF applications waiting for evaluation by the U.S. Securities and Exchange Commission (SEC), surpassing the number of Bitcoin spot ETF applications by a margin of 5. This influx of applications coincides with reports suggesting that the SEC is now more open to the idea of approving an Ether futures ETF.
Confused Signals from the SEC
There are indications that some companies decided to refile their Ether futures ETF applications after receiving calls from SEC staff expressing their readiness to review them. However, the messaging from the SEC has been perplexing, as the regulator previously indicated that Ether was deemed too young for a futures ETF approval. The agency’s change in stance has left some companies questioning the consistency of the SEC’s approach to these applications.
The SEC’s recent actions may have been influenced by the controversial listing of a leveraged Bitcoin futures ETF by Volatility Shares in June. The move drew criticism from the crypto investment community, as it highlighted the SEC’s apparent hypocrisy in denying less risky crypto spot ETF products. While the SEC requested Volatility Shares to withdraw its Bitcoin futures ETF application, the company declined based on the fact that it fell within an already established framework. This rejection prompted Volatility Shares to file an Ether futures ETF application, which further triggered the SEC to inform other applicants of its readiness for evaluation.
Bloomberg ETF analysts James Seyffart and Eric Balcunas recently shared their prediction that there is a 75% likelihood of an Ether futures ETF being approved by the end of the year, giving it a higher probability than a Bitcoin spot ETF, which they estimated at 65%. This forecast reflects the growing interest and potential acceptance of Ethereum within the financial industry.
While the spotlight has been on Bitcoin spot ETF applications recently, the rapid increase in Ethereum futures ETF applications should not be overlooked. With 14 applications already awaiting evaluation, it is clear that Ethereum has caught the attention of investors and regulators alike. Despite the confusion surrounding the SEC’s messaging, there is a growing belief that an Ether futures ETF will receive approval in the near future. This development could potentially drive further adoption of Ethereum and solidify its position as a key player in the cryptocurrency market.
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