The United States Securities and Exchange Commission (SEC) has received another ETF application, adding to its growing list. This time, VanEck has filed a futures-based Ethereum ETF, called the Ethereum Strategy ETF. This follows a bitcoin futures prospect strategy that was submitted to the SEC.
VanEck is well known in the market for its bitcoin ETF applications. It has also applied for an Ethereum ETF, but all eyes are mostly on the bitcoin application. Of course, none have been approved so far, and the SEC has delayed its decision multiple times. Still, the firm manages to resolutely move forward with its plans.
Should the market receive its first approved ETF, then there’s no doubt that there will be a massive interest in the investment vehicle. Some would-be investors are holding out because they would like a simpler, more accessible way of entering the market. ETFs are available in Europe and some countries, so the possibility is not out of the realm of possibility.
Of course, all of this depends on when the SEC will approve an ETF. Chairman Gary Gensler has repeatedly stated that investor protection is a priority. To that end, he has made numerous statements and called on Senator Elizabeth Warren for regulatory support.
Investors in the market are eager for approval, which could result in a seismic shift for the market. An ETF would make it easy for many investors to hop into the market, thus boosting adoption. For that reason, the market is paying close attention to what the SEC is doing.
When will an ETF approval arrive?
The truthful answer to the question is no one can be sure. While the SEC is very likely to offer a decision one way or the other by the year’s end, there’s no telling if there’ll be an approval. Several ETF applications now lie on the wayside, with the SEC saying that investor protection and market manipulation remain concerns.
Cryptocurrency supporters argue that an ETF will make the market more regulated and actually prevent some of the concerns the SEC has. For one thing, it will offer a safe way to invest in the market, as opposed to the more unregulated ways currently available.
The SEC is working with other governmental agencies to form a broad regulatory framework for the market. This is likely to inform the decisions on ETF approvals, and investors will have to wait on this. The silver lining is that once the regulation is out, fund managers should have a better sense of what the SEC is looking for.