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Ethereum Futures ETF Race Heats Up as ProShares and Grayscale Join the Fray

2 mins
Updated by Kyle Baird
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In Brief

  • Six Ethereum futures ETF filings, including those from ProShares and Grayscale, are currently awaiting approval.
  • Grayscale and Bitwise had previously withdrawn their filings in response to SEC's concerns, but are now back in the race.
  • BlackRock's Bitcoin ETF, if approved, could unlock $30 trillion worth of capital, according to a Bloomberg analyst.
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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.

Top crypto platforms in the US | February 2024

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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