This slew of fillings with the SEC entailed plans to launch a version of strategy centered on the world’s second-largest crypto asset, ETH.
However, like spot bitcoin ETF, the SEC has yet to approve applications, citing concern over market manipulation and investors’ vulnerability.
In light of this uncertainty surrounding spot ETH ETFs, it appears that futures ETH ETFs have a higher likelihood of receiving approval from the SEC.
Futures ETFs would directly invest in futures contracts traded on the Chicago Mercantile Exchange (CME) rather than in the underlying smart contract asset.
The regulatory body views futures ETFs as a commodity that can be monitored by the CME, giving investors protection against price manipulation.
However, reports have suggested that the SEC may commence approval of Ether futures ETFs in early October, which has generated significant interest among asset managers eager to participate.
Supporting this speculation, Bloomberg’s Intelligence analyst, James Seyffart, indicated an increased probability of the SEC approving ETH futures ETF applications.
Seyffart said, “Looking like the SEC is gonna let a bunch of #Ethereum futures ETFs go next week potentially.”
According to the analyst, there’s been a spate of acknowledged ether futures ETFs filings from the SEC, which is way ahead of normalcy.
This heightened activity may be attributed to an impending shutdown scheduled for 12:01 a.m. ET on October 1 if Congress fails to reach an agreement or establish a funding strategy for the new fiscal year.
Such a development would impact the SEC, other financial regulators, and federal agencies. Nevertheless, greater clarity is expected in the coming days.