US SEC Would Likely Let Ethereum Futures ETFs Go Live Next Week: Bloomberg Intelligence Analyst
Ethereum (ETH) futures exchange-traded funds (ETFs) is likely to rollout next week, ahead of the potential US Government shutdown, Bloomberg analysts note.
James Seyffart, Bloomberg intelligence analyst noted that the US Securities and Exchange Commission (SEC) would “let a bunch Ethereum futures ETFs go next week potentially.”
Seyffart, along with fellow analyst Eric Balchunas reported that the Ethereum Futures ETFs have a 90% chance of launching in October 2023.
“While spot remains in limbo, Ether futures ETFs highly likely (90% odds) to start rolling out in early Oct.”
While spot remains in limbo, Ether futures ETFs highly likely (90% odds) to start rolling out in early Oct. Valkyrie first (albeit with a btc + eth ETF) followed by dozen+ straight ether futures ETFs. Gonna be a wild race albeit w/ much lower stakes than spot via @JSeyff pic.twitter.com/no8kP5DTZt— Eric Balchunas (@EricBalchunas) September 27, 2023
The analysts predicted that Valkyrie Bitcoin futures ETF (BTF) would become the “first to hold Ethereum exposure on October 3 after a strategy change.” This would be followed by other straight Ether futures ETF applicants, Balchunas added noting that it is “gonna be a wild race.”
Further, they said that the first ETF to solely offer Ethereum futures would come from Volatility Shares. “Its application is expected to go effective on Oct. 11, allowing an Oct. 12 launch.”
However, not all Ethereum futures ETFs that are proposed would be launched, they confirmed. Along with Valkyrie and Volatility Shares, 15 Ethereum ETF proposals have come from nine issuers.
These include Ethereum ETF applications from firms including VanEck, ProShares, Grayscale, Bitwise, Direxion, and Roundhill.
Likely Before the US Govt. Shutdown
In an update on Sept. 28, Balchunas wrote that the US SEC wanted to accelerate the launch of Ether futures ETFs, before the government shutdown.
“They [SEC] want it off their plate before shutdown,” he noted, as once the shutdown kicks off, the majority of the SEC staff would become unavailable.
UPDATE: Hearing the SEC wants to accelerate the launch of Ether futures ETFs (bc they want it off their plate bf shutdown) so they've asked the filers to update their docs by Fri pm (no small task to jam into 48hrs, esp for indie issuers), so they can go eff Mon and trade Tue. https://t.co/gKyQFK12aM— Eric Balchunas (@EricBalchunas) September 28, 2023
The US government will shutdown at 12:01 a.m. ET on October 1, if Congress fails to pass 12 different spending bills to fund agencies across the government, a possibility that looks increasingly likely.
Further, the analyst wrote that the regulator has asked various filers to update their documents by Friday afternoon, “so they can go effective Monday and trade Tuesday,” next week.