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The United States Securities and Exchange Commission (SEC) is experiencing a significant increase in applications for Ether futures exchange-traded funds (ETFs), with 11 Ether-related submissions made in under a week. ProShares, a leading fund manager, is spearheading this trend, having filed four distinct applications for Ether-based ETFs, which include a dual Bitcoin and Ether futures strategy ETF, a short Ether Strategy ETF, and an Ether Strategy ETF.
The most recent ProShares ETF application, submitted on August 3rd, suggests an equal-weight Bitcoin and Ether ETF designed to track the performance of maintaining long positions in the nearest maturing monthly Bitcoin and Ether futures contracts. However, it is important to highlight that the SEC has yet to approve an ETF that tracks Ether futures contracts, whereas Bitcoin futures ETFs have existed since October 2021.
The wave of Ether-centric applications was initiated by Volatility Shares, which filed its Volatility Shares Ether Strategy ETF on July 28. This was followed by submissions from Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments, all of which filed new Ether futures applications on August 1.
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If the SEC does not reject any applications, the Ether ETFs are expected to launch 75 days from their respective filing dates, with the Volatility Shares ETF scheduled to debut on October 12.
Grasping the fundamental distinction between futures and spot ETF products is crucial. While futures ETFs track the price of futures contracts, spot ETFs require the issuer to acquire the underlying asset. Spot ETFs are considered more legitimate as they involve the fund manager purchasing and holding the underlying asset.
This increase in Ether-related applications occurs alongside a surge of filings from major asset management firms aiming to introduce spot Bitcoin ETFs. Notably, BlackRock, the largest asset manager globally, is among those competing to launch the first spot Bitcoin ETF in the United States.
As the ETF landscape shifts with the emergence of Ether futures offerings and the potential for spot Bitcoin ETFs, investors and the crypto community are keenly awaiting the SEC’s decisions, which could greatly influence the accessibility and appeal of crypto investments within traditional financial markets.
The post Ether ETFs Surge: SEC Flooded with 11 Filings in a Week appeared first on BitcoinWorld.
