The number of Ethereum Futures ETFs awaiting approval from the SEC now stands at six. The race to get a futures-based Ethereum ETF approved is heating up, with several major players in contention.
The Ethereum futures ETF filings that are awaiting approval are the Ether Strategy ETF, Bitwise Ethereum Strategy ETF, Roundhill Ether Strategy ETF, VanEck’s Ethereum Strategy ETF, Proshares Short Ether Strategy ETF, and the Grayscale Ethereum Futures ETF.
Six Ethereum Futures ETF Filings Awaiting Approval
Ethereum futures ETFs may be an attractive choice to investment firms because they can offer exposure to emerging fields. This seems to be the case with Roundhill, which focuses on highly thematic funds like the Metaverse and generative AI ETFs. The firm, established in 2018, has a strategy strongly associated with innovative products.
Volatility Shares, founded in 2019, offers 4 ETFs, managing about $173.6 million in funds. One of these is the 2x Bitcoin Strategy ETF, while others are linked to long and short VIX futures indices, as well as one linked to the S&P 500 VIX Mid-Term Futures Inverse Daily Index.
Such investment vehicles would grant investors exposure to futures contracts of the market’s second-biggest asset. It varies from spot ETFs, which are yet to see approval because it does not track the actual price of Bitcoin. The United States Securities and Exchange Commission (SEC) has argued that the market lacks investor protection and is subject to market manipulation, the result of which means that it cannot approve a spot ETF.
Most firms submitted their Ethereum futures applications on Aug. 1. This space has growing competition as companies change their tactics amid various updates and developments.
Learn more about the history of Ethereum and its shift to a proof-of-stake consensus: What is the Ethereum Shanghai Upgrade?
Grayscale and Bitwise Previously Withdrew Filings
Both Grayscale and Bitwise withdrew their filings earlier in response to statements made by the SEC. Grayscale filed an amendment to its filing to remove any mentions of an Ether futures ETF. The SEC had also previously asked Grayscale to rescind its application for a Filecoin Trust. The argument stated that one could consider the latter a security.
Meanwhile, Bitwise withdrew its application for an Ethereum futures ETF entirely. Of course, it is back in the race. Like other firms, it’s determined to be an early mover in this sector.
Outside of Ethereum Futures ETFs, perhaps of most note in this investment space is BlackRock’s Bitcoin ETF. The world’s largest asset manager is recommending an optimal portfolio allocation of 84.9% Bitcoin.
One Bloomberg analyst said the ETF could unlock $30 trillion worth of capital. This could happen if it were to be approved by the SEC. The fact that such a well-established firm is filing an ETF suggests that approval could happen not too far into the future.
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