Ether Futures ETFs in the U.S.: Accelerated Launch Amid Government Shutdown Fears

The landscape of cryptocurrency investments in the United States may be on the brink of a transformative moment as the eagerly awaited Ether futures exchange-traded funds (ETFs) appear poised to enter the market.

Bloomberg analysts have suggested that these groundbreaking investment products could commence trading in the very near future, driven by an unexpected catalyst - the looming possibility of a government shutdown.

An Expedited Launch

On September 28, Bloomberg Intelligence analyst James Seyffart hinted at the potential introduction of Ether futures ETFs, indicating that it was "looking like the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially." This revelation emerged in response to fellow ETF analyst Eric Balchunas, who conveyed that the U.S. Securities and Exchange Commission (SEC) was inclined to hasten the rollout of Ether futures ETFs. Balchunas surmised that the SEC's motivation might be to address this matter before a potential government shutdown takes effect, starting on October 1.

Rapid Preparations Amid Uncertainty

In response to the looming government shutdown, ETF issuers appear to be on an accelerated timeline. Balchunas noted that several filers were actively updating their documents by Friday afternoon, a proactive measure aimed at facilitating trading as early as the following Tuesday. While the analysts did not specify their sources of information, this development adds to the growing anticipation surrounding the approval of cryptocurrency ETFs.

A Crowded Queue

Currently, there are 15 Ether futures ETFs awaiting approval from nine different issuers, as disclosed by the analysts in a September 27 report. Among the companies seeking approval for Ether futures or hybrid ETF products are prominent names such as VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill. This surge in applications underscores the increasing demand for cryptocurrency-based investment products.

High Likelihood of October Launch

Bloomberg's analysts have assigned a 90% likelihood of Ether futures ETFs launching in October, with Valkyrie's Bitcoin futures product scheduled to pioneer the inclusion of Ether exposure on October 3. However, they also cautioned that not all pending ETFs are expected to make it to market. This suggests that while the launch of these investment vehicles is imminent, competition may result in a selective entry.

Ether Prices: Awaiting the Impact

The anticipation surrounding the debut of Ether futures ETFs has been a notable driver of Ethereum's price in recent months. In August, the mere expectation of ETF approval alone led to an 11% surge in ETH prices. As of now, ETH has witnessed a more modest 1% gain for the day, trading just above $1,600.

Spot Versus Futures: An Ongoing Discussion

While the spotlight currently shines on Ether futures ETFs, it's important to note that these products are not as eagerly anticipated as their spot-based counterparts. Bitcoin futures ETFs have been available in the U.S. since 2021. Nevertheless, the arrival of Ether futures ETFs marks another significant milestone in bringing crypto investments to mainstream investors.

As the cryptocurrency investment landscape continues to evolve, the imminent arrival of Ether futures ETFs signals a broader acceptance of digital assets in traditional finance, offering investors more diverse avenues to participate in this burgeoning market.

1. cointelegraph

2. decrypt.co