In an unprecedented wave of activity, the United States Securities and Exchange Commission (SEC) has been inundated with applications for Ether (ETH) futures exchange-traded funds (ETFs). In less than a week, a staggering 11 Ether-based filings have flooded the SEC, with ProShares being responsible for the 11th application. ProShares has submitted a proposal for an equal-weight Bitcoin and Ether ETF, which will track the performance of holding long positions in the nearest maturing monthly bitcoin and ether futures contracts. This surge of Ether ETF applications follows a series of filings from other major asset management firms, reflecting a growing interest in cryptocurrency ETFs.
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Ether ETF applications flood the SEC as ProShares files the 11th
ProShares, a fund manager, has recently filed for an equal-weight Bitcoin and Ether exchange-traded fund (ETF). This filing marks the 11th application for an Ether ETF in less than seven days. The sudden surge in applications for Ether-based ETFs has flooded the United States Securities and Exchange Commission (SEC) with requests.
ProShares’ latest ETF application
ProShares’ most recent ETF application proposes an equal-weight Bitcoin and Ether ETF. The fund aims to track the performance of holding long positions in the nearest maturing monthly Bitcoin and Ether futures contracts. By creating an ETF that focuses on both Bitcoin and Ether, ProShares seeks to offer investors exposure to two of the most prominent cryptocurrencies.
11 Ether ETF applications in less than a week
The SEC has experienced a deluge of applications for Ether futures ETFs, with a total of 11 filings in less than a week. This sudden influx of applications highlights the increasing interest in offering investment products tied to Ether. As more investors recognize the potential of cryptocurrencies, ETFs become an attractive option for gaining exposure to these digital assets.
ProShares files multiple Ether-based ETF applications
ProShares has been particularly active in filing ETF applications focused on Ether. In addition to the equal-weight Bitcoin and Ether ETF, ProShares has filed for three other separate Ether-based ETFs. These include a dual Bitcoin and Ether futures strategy ETF, a short Ether strategy ETF, and an Ether strategy ETF. Each of these ETFs offers a unique investment strategy for those interested in Ether.
11 Ether-related ETF filings in the past seven days
The past seven days have seen a surge in Ether-based ETF filings, with a total of 11 applications being submitted. These filings have been exclusively for futures ETFs, which track the performance of futures contracts rather than holding the underlying asset. The wave of Ether-based ETF applications started with Volatility Shares filing for the Volatility Shares Ether Strategy ETF on July 28. Other major asset management firms, including Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments, have all joined in submitting new Ether futures applications on August 1.
SEC has never approved an ETF that tracks Ether futures contracts
While Bitcoin futures ETFs have been approved since October 2021, the SEC has yet to approve an ETF that tracks Ether futures contracts. This indicates that the SEC is still assessing the viability and risks associated with Ether-focused investment products. It remains to be seen how the SEC will respond to the surge in Ether ETF applications and whether any of them will be approved.
Launch of Ether ETFs 75 days from filing dates
If the SEC does not deny any of the Ether ETF applications, these investment products are expected to launch 75 days from their respective filing dates. The first Ether ETF to launch would be the Volatility Shares ETF, scheduled for October 12. The launch of Ether ETFs would provide investors with a new way to gain exposure to Ether’s price movements without directly holding the cryptocurrency.
Difference between futures and spot ETF products
It is important to understand the difference between futures and spot ETF products. Futures ETFs track the price of futures contracts rather than the actual underlying asset. In the case of Ether futures ETFs, the ETF’s performance would depend on the price movements of Ether futures contracts. On the other hand, spot ETFs involve the fund manager purchasing and holding the underlying asset. Spot ETFs are generally considered more reliable as they directly hold the asset.
Ether-focused applications follow filings for spot Bitcoin ETFs
The recent surge in Ether-focused ETF applications follows a frenzy of filings for spot Bitcoin ETFs. Major asset management firms, including BlackRock, have been seeking approval to launch the first spot Bitcoin ETF in the United States. This indicates a growing interest in offering investment products tied to cryptocurrencies, both in terms of Bitcoin and Ether. The demand for such products highlights the increasing mainstream acceptance and recognition of cryptocurrencies as legitimate investment assets.
Chinese police vs. Web3, blockchain centralization continues: Asia Express
In addition to the flurry of ETF applications, there have been notable developments in the Asian market. Chinese police have cracked down on Web3, a decentralized web infrastructure built on blockchain technology. This crackdown highlights the ongoing tension between decentralized technologies and government authorities seeking to maintain control. It also raises concerns about centralization in the blockchain space and its implications for the future of cryptocurrencies and decentralized finance.
In conclusion, the SEC has been flooded with Ether ETF applications, with ProShares filing the 11th application in less than a week. These applications represent a growing interest in offering investment products tied to cryptocurrencies, particularly Ether. While the SEC has yet to approve an ETF that tracks Ether futures contracts, the launch of Ether ETFs could provide investors with new opportunities for exposure to this digital asset. It remains to be seen how the SEC will respond to the surge in applications and whether any of them will be approved. Additionally, developments in the Asian market, such as the Chinese police crackdown on Web3, highlight the ongoing challenges of decentralization and blockchain centralization.
