Ahead of the potential U.S. government shutdown, the Securities and Exchange Commission (SEC) is reportedly fast-tracking the introduction of ether futures exchange-traded funds (ETFs). According to Bloomberg analysts, the Ethereum futures products could hit the U.S. market as soon as next week.
First Ether Futures ETFs Expecting Approval Next Week
An impending U.S. government shutdown might be speeding up the launch of Ethereum futures ETFs.
In a Sept. 28 post on X(formerly Twitter), senior ETF analyst at Bloomberg, Eric Balchunas, noted that it was “looking like the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially.”
His remark was in response to fellow ETF analyst Eric Balchunas, who revealed he had heard that the SEC is eager to “accelerate the launch of Ether futures ETFs (bc they want it off their plate bf shutdown).” Balchunas further said that he’d heard the SEC asked the filers to update their documentation by Friday evening so they could commence trading as early as Tuesday next week.
There is a very strong possibility the U.S. federal government will be shut down on Oct. 1 following a budget impasse in Congress, a move that is expected to incapacitate an array of federal services.
The agency currently has over a dozen applications for Ethereum futures ETFs submitted by nine issuers, including VanEck, BitWise, ProShares, and Grayscale, among others. The Bloomberg strategists believe Valkyrie’s Bitcoin Futures ETF is set to become the first fund to have Ethereum exposure by Oct. 3.
“We expect pure Ethereum futures ETFs to start trading the following week thanks to Volatility Shares’ actions,” they added.
However, the analysts suggest that out of the 15 Ethereum futures ETF applications currently awaiting the SEC’s decision, not all are expected to get the green light.
While the crypto community anxiously awaits the debut of futures-based Ethereum ETFs, the situation is not rosy for spot investment vehicles. The SEC recently extended the deadline for making a decision to approve the Ethereum spot ETFs filings by Ark Invest and VanEck. The new deadline is now December 26, 2023.