Ethereum futures ETFs (exchange-traded funds) could start trading in the United States for the first time as early as next week, according to Bloomberg analysts. This comes just a few hours after the US Securities and Exchange Commission (SEC) postponed decisions on Ark Invest and VanEck ETH spot ETF applications.
Why Ethereum Futures ETFs Could Launch Next Week
On September 28, Bloomberg analyst Eric Balchunas said – via a message on X (formerly Twitter) – he heard that the SEC wants to accelerate the launch of Ether futures ETFs. Balchunas stated that the committee wants this “off their plate” before the possible U.S. government shutdown.
The United States Government faces a possible partial closure at 12:01 a.m. ET on October 1 if Congress fails to pass spending bills for the upcoming budget year, potentially impacting the nonessential operations of most government agencies.
The Bloomberg analyst claims that in anticipation of this scenario, several Ethereum futures ETF applicants have been asked to update their documents by Friday afternoon so that they can begin trading as early as Tuesday, October 3.
James Seyffart, another Bloomberg ETF analyst, responded to Balchunas’ disclosure, in which he says it appears that “the SEC may let go of some Ethereum futures ETFs next week.” It’s worth noting that none of the analysts have made public their sources for this latest development.
According to an earlier remark According to the analysts, there are 15 ETH futures ETFs from at least nine issuers awaiting SEC approval. In their analysis, Balchunas and Seyffart estimate a 90% chance that Ethereum futures ETFs will be launched in early October.
The note read:
Ethereum futures ETFs have a 90% chance of launching in October, in our view, with Valkyrie’s Bitcoin futures ETF (BTF) set to become the first to maintain exposure to Ethereum on October 3 following a strategy change. We expect pure Ethereum futures ETFs to start trading next week thanks to Volatility Shares’ actions.
While the spot remains in limbo, Ether futures ETFs will most likely (90% chance) start in early October with Valkyrie rolling out first (albeit with a btc + eth ETF), followed by dozens+ straight ether futures ETFs. It will be a wild race, albeit with a much lower stake than spot via @JSeyff pic.twitter.com/no8kP5DTZt
— Eric Balchunas (@EricBalchunas) September 27, 2023
Discover Ethereum ETFs in limbo?
Before this latest update on ETH futures ETFs, the U.S. Securities and Exchange Commission had set deadlines for ARK 21 Shares And VanEcks Etherspot ETF Applications. In separate documents, the committee said it would set out a longer period for taking action on a proposed rule change for the listings of these Ethereum spot ETFs.
The SEC said:
The Commission believes it is appropriate to establish an extended period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
The Securities and Exchange Commission also said it had received no public comments on either proposal. Meanwhile, it set December 25 (for VanEck) and December 26 (for ARK 21Shares) as the new deadline for a new postponement or decision on the Ethereum spot ETFs.
The approval of an ETH spot exchange-traded fund is highly anticipated due to the potential positive impact on the Ethereum price, which has struggled in recent weeks. At the time of writing, Ether is valued at $1,617which reflects a 1.6% price increase in the last 24 hours.
Ethereum price shows signs of recovery on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from Shutterstock, chart from TradingView
