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A Flood of Ether ETF Applications
In a significant development for the cryptocurrency market, the United States Securities and Exchange Commission (SEC) has received an impressive barrage of Ether (ETH) futures exchange-traded funds (ETFs) proposals. Notably, there have been 11 such applications submitted within a span of less than one week.
ProShares ETF Application
The most recent filing came from ProShares ETF on August 3, with a request to establish an ETF that maintains an equal weighting in Bitcoin (BTC) and Ether investments. The proposed fund, according to the filing documentation, aims to follow “the performance of holding elongated positions in the next to mature monthly Bitcoin and Ether futures contracts."
Wave of Ether-Based ETF Applications
Bloomberg's ETF analyst, James Seyffart, revealed that the fund manager ProShares has submitted four distinct Ether-based ETF filings over the past few days. These include a dual Bitcoin and Ether futures strategy ETF, a short Ether strategy ETF, and an Ether strategy ETF.
The last week has seen an astonishing influx of 11 Ether-linked ETF applications, all meant for futures ETFs. The onslaught of Ether-based ETF applications started with the filing of Volatility Shares for the 'Volatility Shares Ether Strategy ETF' on July 28.
Hot on their trail, a number of other asset management firms including Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares and Grayscale Investments submitted fresh Ether futures applications on August 1.
Waiting on SEC Approval
It's worth mentioning that the SEC has yet to give its approval for an ETF tracking Ether futures contracts. Conversely, Bitcoin futures ETFs have been operational since October 2021.
The Ether ETFs stand to hit the market 75 days post their respective filing dates, provided the SEC approves them. The inaugural launch is likely to be the Volatility Shares ETF on October 12.
The Difference of Futures and Spot ETFs
Essentially, the difference between future and spot ETF products is that the former tracks the pricing of futures contracts, while the latter actually requires the issuer to purchase the underlying asset. Considered more legitimate, spot ETFs involve the fund manager acquiring and holding the actual asset.
Chasing the Bitcoin ETF Trend
This surge in Ether-centered applications follows a flurry of filings from leading asset management companies vying to launch spot Bitcoin ETFs. BlackRock, the world's biggest asset manager, is among those aiming to introduce the first spot Bitcoin ETF in the United States.
