A report captured on the Wall Street Journal (WSJ) on August 18 revealed that the US Securities and Exchange Commission (SEC) will greenlight the Ether futures exchange-traded funds (ETFs) at the same time. A source familiar with the information told the WSJ that the market regulators would approve the pending applications simultaneously.
SEC to Approve Bitcoin ETFs
The WSJ report stated that most of the investment companies have submitted Bitcoin (BTC) and Ether EFTs applications to the SEC, which are currently being reviewed. The report demonstrated that the SEC has not provided any feedback concerning the applications submitted.
Unlike in 2021, where the SEC rejected some of the applications for EFTs, the market regulators have not ordered any applicant to withdraw the submission. The market critics told the WSJ team that the SEC has no problem with the recently released ETF assets.
As of this writing, around 16 investment companies await the SEC to approve their Bitcoin and Ether futures ETFs applications. The application continues to pile up after the SEC official hinted that the regulators will start to review the applications.
A few days ago, the Valkyrie team submitted an Ether Futures ETFs application. Previously, the asset manager had filed for a Bitcoin-Ether Futures ETF. Valkyrie seeks to develop ETFs that support the conversion of Ether and Bitcoin.
A source familiar with the matter told the Bloomberg team that the SEC plans to approve Ether Futures ETFs in October. From the report it was evidents that the investors pressured the SEC to approve the ETFs, including the spot Bitcoin ETFs commonly used to monitor the token prices.
Race to Provide Bitcoin and Ether ETFs
Presently, key players in the assets management sector, including BlackRock, ARK Investment, and Bitwise, among others, have resubmitted their applications for review and approval purposes.
A statement issued by Sumit Roy, an analyst at etf.com, argued that if the SEC could approve the pending ETFs, the regulators would shed light on which assets are securities or commodities. Recently, the regulators requested the SEC to clarify whether Ether was a security or a commodity.
The analyst argued the approval of Ether futures ETF would imply that the second-largest crypto by market cap was not a security.
Elsewhere, the ETF analyst at Bloomberg, James Seyffart, observed that most investment companies waiting for the SEC approval have invested in differentiating their products in the market. The analyst noted that Roundhill Investment plans to introduce a 0.19% management fee for the Ether Futures ETFs.
Despite the effort made by the asset manager to introduce the Ether Futures ETFs, other analysts remain pessimistic concerning the matter. An analyst at Morningstar, Bryan Armour, projects that the investors will show less interest in the proposed ETFs.
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