- Ethereum Futures ETF might get the SEC nod soon.
- The market still waits for the regulators to approve Bitcoin Spot ETF.
While the world awaits SEC’s nod for Bitcoin Spot ETF, chances are that the regulatory agency might approve Ethereum Futures ETFs by October 2023. Per a Bloomberg report, anonymous sources familiar with the matter say that the Securities and Exchange Commission might not block twelve pending applications.
Ethereum Futures ETF Might Beat Bitcoin Spot ETF in Approval Race
It is still being determined whether any specific application will get approval or all at once. But officials hinted that the Securities and Exchange Commission (SEC) might approve some by October 2023. Companies that applied for the Ethereum Futures Ethereum are not allowed to say anything as they are still under the procedure with the SEC.
Bitwise Asset Management and Valkyrie Investments are believed to be leading the race for approval. It should be note that Valkrie submitted the first fresh refiling on July 28, 2023. Also, experts need to claim the sequence in which the applicant would get approval from the financial watchdog of the United States.
The Ethereum Futures ETF Scenario Explained
In May 2023, the financial watchdog requested the firms to withdraw their applications for Ethereum Futures tracking ETF. But, over a dozen firms have refiled the applications with the SEC in the last couple of months.
The companies that have applied for Ethereum Futures include ProShares, Volatility Shares, Valkyrie, and Bitwise. Ethereum would track the price of Ethereum futures traded on the Chicago Mercantile Exchange. Contrary to the expectation of direct spot exposure to the popular digital asset.
Multiple Traditional Finance (TradFi) giants have been running in the approval race for Bitcoin Spot ETF. BlackRock, the most significant asset manager, filed for BTC Spot ETF, which started a race that included greats like Fidelity, ARK Invest, and others. However, the agency has yet to accept any request and might give a nod sometime in 2024.
How Bitcoin Spot ETF and Ethereum Future ETF Differ?
An investor gets direct exposure to BTC’s current market price in the Bitcoin Spot ETF. They can buy it from an exchange and get exposure to the cryptocurrency without actually buying it from any crypto exchange. Customarily an investor had to buy Bitcoin from an exchange, which deterred many retail investors from engaging.
Roundhill Investments disclosed a management fee of 0.19% for ETF futures , a far lower amount compared to Proshares Bitcoin Strategy (BITO), coming at 0.95%. According to etf.com data, the average expense ratio for the United States cryptocurrency ETFs is 0.98%.
In August, Jacobi Asset Management was list as Europe’s first Bitcoin Spot on Euronext, Amsterdam. It got approval after waiting for nearly two years. The Jacobi FT Wilshire Bitcoin will be regulate by the Guernsey Financial Services Commission (GFSC) and will be trade under the ticker “BCOIN.”
Europe is beating the United States in everything crypto; they are in the implementation stage of the Market in Crypto Asset (MiCA) regulations—a comprehensive regulatory framework surrounding digital assets. With the approval of Bitcoin Spot ETF, it surpassed America’s approval of exchange-traded funds.
However, crypto ETFs’ final results or repercussions in the broader market are yet to be understand. But experts argue that it would help adopt the cryptocurrency worldwide.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.