In a race against time due to the looming threat of a U.S. government shutdown, the U.S. Securities and Exchange Commission (SEC) is expediting the approval process for Ethereum futures exchange-traded funds (ETFs), potentially paving the way for their trading debut as early as next week. This development comes as the crypto community eagerly anticipates this groundbreaking move in the financial market.
Bloomberg ETF analysts Eric Balchunas and James Seyffart have shed light on the SEC’s accelerated efforts to greenlight multiple Ethereum futures ETFs. Balchunas reported via Twitter that the SEC wants to fast-track these ETFs “off their plate” before a potential shutdown, urging filers to update their documents within a tight 48-hour window.
While earlier predictions suggested a 90% chance of Ethereum futures ETFs launching in October, recent developments indicate an imminent debut. Valkyrie’s Bitcoin futures ETF (BTF) was originally scheduled to incorporate Ethereum exposure on October 3, with Volatility Shares following on October 11. However, the impending government shutdown could push approval and launch dates forward.
NEW: Ether futures ETFs could be trading as early as Tuesday as SEC looks to speed things up in order to get it done bf looming shutdown, just like they sped up delays on spot bitcoin ETFs. If so, issuers likely in mad scramble as we speak to update docs. Stay tuned. @JSeyff pic.twitter.com/onTpS3r53m
— Eric Balchunas (@EricBalchunas) September 28, 2023
Nine issuers, including VanEck, ProShares, and Grayscale, have filed 15 Ethereum futures ETFs, although not all are expected to receive approval. This eleventh-hour push by the SEC suggests a desire to avoid discussing the matter during a House Financial Services Committee hearing.
Scott Johnsson, a finance lawyer, highlighted the significant implications of this move, including the affirmation that CME ETH futures are not security futures, solidifying Ethereum’s status outside of being a security. This could pave the way for spot-traded ETFs and eliminate the risk of withdrawing Bitcoin futures approvals.
As the October 1 government shutdown deadline approaches, the SEC’s accelerated ETF approvals underscore the urgency to maintain regulatory operations amid potential disruptions, solidifying the crypto industry’s presence in the traditional financial landscape. However, it’s worth noting that the excitement for Ethereum futures ETFs doesn’t quite match the fervor seen for their spot-based counterparts, as the U.S. has already hosted Bitcoin futures ETFs since 2021.
