The US Securities and Exchange Commission (SEC) is considering the approval of Ethereum futures exchange-traded funds (ETFs). This development follows the growing interest of various financial institutions that have submitted applications to the SEC for ETF products based on cryptocurrencies, including BTC and ETH.
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SEC May Approve Ethereum-Futures ETFs Soon Big Victory For Crypto: SEC To Greenlight Ethereum ETFs
According to a Bloomberg report, the US Securities and Exchange Commission (SEC) is considering approving an Ethereum (ETH) futures exchange-traded fund (ETF) for institutional investors in the country. This move could pave the way for other companies, such as Bitwise, ProShares, Volatility Shares, and Roundhill, which have submitted their own applications for ETH futures ETFs. SEC May Approve Ethereum-Futures ETFs Soon.
The SEC has been cautious about approving cryptocurrency ETFs until recently, only allowing trading in funds related to Bitcoin futures contracts on the Chicago Mercantile Exchange. However, there has been increasing speculation about the possibility of an Ethereum futures product entering the broader financial market. Despite this, the US financial watchdog has been slow to permit a derivatives product in the second-largest cryptocurrency.
The SEC's hesitation to approve an Ethereum futures ETF is due to concerns about digital asset price manipulation and insufficient liquidity.
The Cryptocurrency ETF Landscape
Several asset management companies in the US and beyond are pushing to launch crypto exchange-traded funds. Grayscale Investments LLC, a leading asset management firm, is still waiting for the US SEC's approval to convert its asset from a Bitcoin trust to a Bitcoin ETF.
It's worth noting that Grayscale has announced its decision to hire more workers for its ETF team. In related news, Valkyrie Investments, another prominent asset management company, has filed for an ETF based on Ethereum futures.
The fund will invest almost all of its assets in Ethereum exchange-traded futures, with a small portion allocated to collateral investments such as cash, cash-related instruments, or high-end securities.
In other news, Galaxy Digital CEO Mike Novogratz has stated his optimism for regulators to approve a spot Bitcoin exchange-traded fund. He said that the question of approving a spot Bitcoin ETF is a "matter of time, not whether the agency will approve."
The CEO added that institutional players are optimistic that the US financial agency will approve spot Bitcoin ETFs in less than six months. While the United States SEC delays its approval, other countries have long supported crypto ETFs.
For example, the holding company linked to QR Asset Management QR Capital in Brazil announced an ETH ETF approval in 2021. Brazil's securities regulatory agency, Comissão de Valores Mobiliários (CVM), approved its Ethereum $ETH ETF fund application.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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