SEC is ready to approve ETFs based on ether futures. Companies anticipating this opportunity are set to achieve significant success. Among the applicants for launching ETFs are Volatility Shares, Bitwise, Roundhill, and ProShares.
By October, several companies can expect approval for launching ETFs according to sources. SEC, which declined direct cryptocurrency-based ETFs, had already approved funds with bitcoin futures in 2021.
The approval of ETFs with derivatives tied to the second-largest market-cap cryptocurrency has been a lengthy process. Bitcoin’s market value is around $512 billion, while ether’s is $195 billion.
SEC continues to grapple with the risks of bitcoin-linked ETFs, wary of price manipulation and inadequate liquidity. Nevertheless, several companies, including BlackRock Inc., have filed applications for bitcoin-based ETFs. This news drove bitcoin’s price above $31,000.
Both bitcoin and ether continue to experience volatility. Bitcoin is trading around $26,000, while ether has fallen by 11%, reaching $1,600 this month. The upcoming months are poised to be tense due to the court’s decision regarding the Grayscale Investments LLC lawsuit seeking to transform the Bitcoin Trust into an ETF, underscoring the ongoing disputes between SEC and the cryptocurrency community.
