At least 16 Ether or Bitcoin-Ether futures ETF applications are awaiting regulatory approval in the United States.
The United States Securities and Exchange Commission (SEC) is likely to approve multiple applications for Ether futures exchange-traded funds (ETFs) at the same time, The Wall Street Journal reported.
Since July, the regulator has been inundated with applications from various investment firms, including requests combining futures Bitcoin (BTC) and Ether (ETH) strategies. So far, the SEC has not instructed firms to withdraw their applications, unlike in 2021, when firms were instructed to withdraw similar applications. This suggests that the regulator will not block the fund's launch for a few weeks, according to WSJ sources.
At least 16 applications for Ether or Bitcoin-Ether futures ETFs are awaiting regulatory approval. Ether is the native currency of the Ethereum blockchain used for peer-to-peer transactions within the decentralized network. A crypto futures ETF tracks the performance of crypto futures contracts. For example, instead of investing directly in Bitcoin or Ethereum, a crypto futures ETF invests in futures contracts tied to the price of these digital assets.
As the possibility of crypto futures approval approaches, the SEC continues to receive requests. Earlier this week, asset management firm Valkyrie filed for a previous filing combining an Ether futures ETF and a Bitcoin-Ether futures strategy. Valkyrie is the front runner in this race and could see the BTC-ETH ETF debut as early as October.
In the ETF industry, first mover advantage is important. According to the WSJ, based on data from Morningstar, the first futures Bitcoin ETF to be approved from ProShares has raised $1 billion in assets under management since its launch in October 2021, while Valkyrie's similar product launched a few days later. It has raised approximately $28 million in assets under management.
In another major decision affecting the crypto industry, the SEC has not yet decided whether it will approve a spot Bitcoin ETF in the United States. Players awaiting approval include Wall Street giants Fidelity and BlackRock. Based on the filing's timeline, the SEC has until January to make a final decision.