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Ethereum futures ETFs may debut in U.S. next week, despite looming government shutdown

EditorAmbhini Aishwarya
Published 09/28/2023, 06:48 PM
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Ethereum futures exchange-traded funds (ETFs) could start trading in the United States as early as next week, pending approval from the U.S. Securities and Exchange Commission (SEC), according to Bloomberg analysts Eric Balchunas and James Seyffart. This potential development comes on the heels of the SEC delaying decisions on Ark Invest and VanEck ETH spot ETF applications.

In a series of exchanges on Thursday, Balchunas and Seyffart indicated that the SEC is looking to expedite the launch of Ethereum futures ETFs. Balchunas noted that the SEC wants this issue "off their plate" before the potential U.S. government shutdown. If Congress fails to agree on or provide funding for the new fiscal year by 12:01 am ET on October 1, a partial government shutdown could affect most non-essential operations of federal agencies, including financial regulators.

In anticipation of this scenario, Ethereum futures ETF applicants have reportedly been asked to update their documents by Friday afternoon, potentially enabling them to start trading as early as Tuesday, October 3. Seyffart echoed Balchunas' sentiment, suggesting that it appears that "the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially." However, neither analyst disclosed their sources for this information.

As per a note from September 27, there are currently 15 Ethereum futures ETFs from nine issuers awaiting approval from the SEC. The analysts gave these ETFs a 90% chance of launching in October. They also expect Valkyrie’s Bitcoin futures product (BTF) to be the first to hold Ethereum exposure on October 3, followed by pure Ethereum futures ETFs trading the following week due to Volatility Shares’ actions.

Despite these developments, Ether spot ETFs remain in limbo. The SEC recently extended the deadlines for ARK 21Shares and VanEck’s Ether spot ETF applications, stating that it needed more time to consider the proposed rule change and related issues. No public comments were received on either proposal. The new deadlines for another delay or decision on these Ethereum spot ETFs are set for December 25 (for VanEck) and December 26 (for ARK 21Shares).

As of Thursday, Ether was valued at $1,617, reflecting a 1.6% price increase in the past 24 hours.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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