Ethereum (ETH) futures exchange-traded funds (ETFs) are expected to launch next week, according to analysts at Bloomberg. The potential government shutdown in the United States has prompted the US Securities and Exchange Commission (SEC) to expedite the approval process for these ETFs.
Launch of Ethereum Futures ETFs
James Seyffart, Bloomberg intelligence analyst, predicts that the SEC will approve multiple Ethereum futures ETFs next week. He states, “The US Securities and Exchange Commission would let a bunch Ethereum futures ETFs go next week potentially.” Seyffart, along with fellow analyst Eric Balchunas, also believes that the chances of these ETFs launching in October 2023 are high.
“Valkyrie Bitcoin futures ETF (BTF) would become the first to hold Ethereum exposure on October 3 after a strategy change,” notes Seyffart. Balchunas adds that other Ether futures ETF applicants will soon follow, creating a competitive market.
Expectations for Ethereum Futures ETFs
Valkyrie and Volatility Shares are among the issuers proposing Ethereum futures ETFs. Additionally, there are 15 Ethereum ETF proposals from nine issuers, including VanEck, ProShares, Grayscale, Bitwise, Direxion, and Roundhill. However, not all proposed ETFs will be launched.
According to Seyffart and Balchunas, the first ETF solely offering Ethereum futures is expected from Volatility Shares. Its application is set to go effective on October 11, with a launch date of October 12. This indicates that there will be intense competition among ETF issuers to capitalize on the growing demand for Ethereum.
In an effort to expedite the launch process, the SEC has requested filers to update their documents by Friday afternoon. This will allow the ETFs to go effective on Monday and start trading by Tuesday of next week.
The Government Shutdown Situation
The potential government shutdown adds urgency to the ETF approval timeline. Balchunas states, “The US SEC wants it off their plate before shutdown.” With the looming shutdown, the majority of the SEC staff will become unavailable, causing delays in the approval process.
The US government will shutdown at 12:01 a.m. ET on October 1 if Congress fails to pass the necessary spending bills. Consequently, it is crucial for the SEC to approve the ETFs before this deadline to ensure uninterrupted operations.
