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ethereum futures exchange-traded funds (ETFs) may launch next week, just ahead of a possible US government shutdown, Bloomberg analysts note.
On September 28, Bloomberg Intelligence analyst James Seyffart revealed on X (formerly known as Twitter) that the US Securities and Exchange Commission (SEC) could greenlight several ethereum futures ETFs as soon like next week.
Seyffart’s comments came in response to ETF analyst Eric Balchunas, who suggested that the SEC is interested in expediting approval.
Balchunas added that the SEC intends to remove Ether futures ETFs from its agenda before the possible US government shutdown.
He mentioned that several taxpayers have been recommended to update their documents before Friday afternoon to allow trading before Tuesday of the following week.
The US government could shut down at 12:01 a.m. ET on October 1 if Congress fails to reach an agreement on the new fiscal year or provide funding for it. Any liquidity crisis could affect the country’s financial regulators, among other federal agencies.
While none of the analysts revealed their sources, they did note that 15 ethereum futures ETFs from nine different applicants are currently in the approval process.
Companies such as VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion and Roundhill have proposed ethereum futures or hybrid ETF products.
In a September 27 note, analysts gave a 90% probability for the ethereum futures ETF to launch in October. They also highlighted that Valkyrie’s bitcoin futures product will become the first to include exposure to ethereum, with trading expected to begin on October 3.
“We expect pure ethereum futures ETFs to begin trading next week, thanks to Volatility Shares,” the analysts said.
However, they also warned that not all proposed ETFs are likely to get the go-ahead.
The anticipation surrounding Ether futures ETFs has already had an impact on the market.
In August, a report suggested that these ETFs could be approved in October, leading to an 11% rise in eth prices. Currently, eth prices are up a modest 1%, sitting just above $1,600.
Historically, crypto futures products have not generated as much excitement as their spot counterparts.
bitcoin futures ETFs have been available in the US since 2021, setting a precedent for similar ethereum products.
