The cryptocurrency industry is on the brink of a significant breakthrough as the U.S. Securities and Exchange Commission (SEC) signals its intent to approve Ether-futures Exchange-Traded Funds (ETFs). This move comes as a significant development for the crypto space and is expected to bring more mainstream adoption and legitimacy to the growing digital asset market.
The SEC’s regulatory stance towards cryptocurrencies has often been scrutinised for its cautious approach. While Bitcoin futures ETFs have been previously approved, the introduction of Ether-futures ETFs marks a turning point in the SEC’s view on the broader cryptocurrency landscape.
Recently, around twelve Ether-based ETF applications were submitted to the SEC. Those applications came from important companies including ProShares, Volatility Shares, Bitwise, and Valkyrie.
Although the SEC has been very cautious, it is now said that “the regulator is not expected to block the applications of around twelve companies”[1].
Despite the approvals not being official, the authorities allegedly said that some of the files might be accepted as early as October, however it is unclear which specific ETF applications will be granted.
As a consequence, “Such an ETF would track the price of Ethereum futures that are traded on the Chicago Mercantile Exchange, rather than direct spot exposure to the digital asset” [2].
The boom of applications, followed by the potential approval highlights the importance of Ether in the industry, as Ether, the native cryptocurrency of the Ethereum blockchain, has established itself as more than just a digital currency. It powers a vast array of decentralized applications, smart contracts, and decentralized finance (DeFi) protocols. This versatility has elevated Ether’s status beyond that of a mere digital asset and into the realm of a critical component of the blockchain ecosystem.
The approval of Ether-futures ETFs could pave the way for more institutional and retail investors to enter the cryptocurrency market. ETFs are widely regarded as a familiar and accessible investment vehicle, offering exposure to the price movements of underlying assets without requiring direct ownership. This ease of access has the potential to attract a broader range of investors who might have been hesitant to navigate the complexities of purchasing and securely storing cryptocurrencies.
Furthermore, The SEC’s greenlighting of Ether-futures ETFs signifies a growing acceptance of cryptocurrencies within traditional financial systems. The move acknowledges the maturation of the crypto industry and its integration into mainstream investment strategies. This recognition could lead to increased trust among investors and encourage further collaboration between traditional financial institutions and the crypto space.
Meanwhile, ETF expert Eric Balchunas said he was unsurprised by the SEC’s anticipated decision to allow Ethereum futures ETFs.
“This is not surprising to us, we had said they would approve Ether Futures early on in race. Nice to be validated. Now what does it mean for spot? Hard to say beyond it shows that their views/policy/tolerance can change”[3]
This event shows a shift in the SEC stance towards the crypto industry and the decision to approve Ether-futures ETFs can be considered as a pivotal moment for the cryptocurrency industry. It not only reflects the evolution of the regulatory landscape but also signals a more mature and established outlook on cryptocurrencies as a whole.
With the potential for increased adoption, heightened investor confidence, and market growth, the greenlighting of Ether-futures ETFs sets the stage for a new chapter in the crypto industry’s journey towards mainstream acceptance.
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[1] https://decrypt.co/152903/sec-expected-to-approve-ethereum-futures-etfs-by-october-report
[2] https://decrypt.co/152903/sec-expected-to-approve-ethereum-futures-etfs-by-october-report
[3]https://twitter.com/EricBalchunas/status/1692314639235735836?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1692314639235735836%7Ctwgr%5E9a19f3a094826869ee1c5b50e29870fc9817dfd3%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F152903%2Fsec-expected-to-approve-ethereum-futures-etfs-by-october-report
