The United States Securities and Exchange Commission (SEC) is witnessing a remarkable surge in applications for Ether futures exchange-traded funds (ETFs), with 11 Ether-based filings submitted in less than a week. ProShares, a prominent fund manager, is at the forefront of this wave, filing four separate applications for Ether-based ETFs, including a dual Bitcoin and Ether futures strategy ETF, a short Ether Strategy ETF, and an Ether Strategy ETF.
The latest ProShares ETF application, filed on August 3rd, proposes an equal-weight Bitcoin and Ether ETF to track the performance of holding long positions in the nearest maturing monthly Bitcoin and ether futures contracts. However, it’s essential to note that the SEC has never approved an ETF that tracks Ether futures contracts, while Bitcoin futures ETFs have been around since October 2021.
The flurry of Ether-focused applications was initiated by Volatility Shares, which filed its Volatility Shares Ether Strategy ETF on July 28. Following suit were Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments, all submitting new Ether futures applications on August 1.
If the SEC does not deny any applications, the Ether ETFs are set to launch 75 days from their respective filing dates, with the Volatility Shares ETF leading the way on October 12.
Understanding the key difference between futures and spot ETF products is essential. While futures ETFs track the price of futures contracts, spot ETFs involve the issuer purchasing the underlying asset. Spot ETFs are more valid as they involve the fund manager buying and holding the underlying asset.
This surge in Ether-focused applications comes amidst a flurry of filings from major asset management firms seeking to launch spot Bitcoin ETFs. Notably, BlackRock, the world’s largest asset manager, is among those vying to offer the first spot in Bitcoin ETF in the United States.
As the ETF landscape evolves with the introduction of Ether futures offerings and the potential for spot Bitcoin ETFs, investors, and the crypto community eagerly await the SEC’s decisions, which could significantly impact the accessibility and attractiveness of crypto investments in traditional financial markets.