According to Bloomberg analysts, ethereum futures ETFs (exchange-traded funds) could begin trading for the first time in the United States next week. This comes just hours after the US Securities and Exchange Commission (SEC) delayed 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 post on X (formerly Twitter): I was hearing that the SEC wants to accelerate the launch of Ether futures ETFs. Balchunas said the commission wants to “put it out of reach” before a possible US government shutdown.
The United States government faces possible partial closure at 12:01 a.m. ET on October 1 if Congress does not pass spending bills for the next fiscal year, which could affect the non-essential operations of most government agencies.
The Bloomberg analyst states that, in anticipation of this scenario, several ethereum futures ETF applicants were asked to update their documents by Friday afternoon to begin trading on Tuesday, October 3.
James Seyffart, another Bloomberg ETF analyst, answered to Balchunas’ revelation, saying that it looks like “the SEC will potentially let go of a bunch of ethereum futures ETFs next week.” It’s worth noting that none of the analysts divulged their sources on this latest development.
According to a previous note According to analysts, there are 15 eth futures ETFs from at least nine issuers awaiting SEC approval. In their analysis, Balchunas and Seyffart presented a 90% chance that ethereum futures ETFs will launch in early October.
The note said:
We think ethereum futures ETFs have a 90% chance of launching in October, and Valkyrie’s bitcoin futures ETF (BTF) is set to become the first to maintain exposure to ethereum on October 3 after a change of strategy. We expect pure ethereum futures ETFs to begin trading next week thanks to Volatility Shares.
While spot remains in limbo, Ether futures ETFs are very likely (90% chance) to begin rolling out in early October. Valkyrie first (albeit with a btc + eth ETF), followed by over a dozen consecutive ether futures ETFs. It will be a wild race, although with much less at stake than the spot via @JSeyff pic.twitter.com/no8kP5DTZt
– Eric Balchunas (@EricBalchunas) September 27, 2023
Spot ethereum ETFs in Limbo?
Before this latest update regarding eth futures ETFs emerged, the United States Securities and Exchange Commission had delayed the deadlines for ethereum-spot-etf/” target=”_blank” rel=”nofollow”>ARK 21Actions and VanEck’s Ether Spot ETF Applications. In separate filings, the commission stated that it would designate a longer period to take action on a proposed rule change for listings of these ethereum spot ETFs.
The SEC said:
The Commission believes it is appropriate to designate a longer 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 mentioned that it did not receive public comments on any of the proposals. Meanwhile, it set December 25 (for VanEck) and December 26 (for ARK 21Shares) as the new deadline for another delay or decision on ethereum spot ETFs.
The approval of an eth spot exchange-traded fund is highly anticipated due to its potential positive impact on the price of ethereum, which has been struggling in recent weeks. At the time of writing, Ether is valued at $1,617reflecting a price increase of 1.6% in the last 24 hours.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/09/Bloomberg-Analysts-Say-Ethereum-Futures-ETFs-Could-Start-Trading-Soon" alt="ethereum Futures ETF” width=”2108″ height=”1442″ loading=”lazy”/>
ethereum price shows signs of recovery on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from Shutterstock, chart from TradingView
