ETH Futures ETF Issuers Stay Positive on SEC Approval Despite Feud

ETH Futures ETF could still have a possibility to go through and have a green signal from the SEC. According to Fox journalist Eleanor Terrett a few issuers who have submitted applications to the SEC for leveraged ETH futures ETFs have spoken of having a “positive dialogue” with staff. The optimistic approach comes against the backdrop of current allegations on SEC about considering Ethereum as a security.

ETH Futures ETF Approval in June?

Eleanor Terrett adds that one of ETH Futures ETF issuers told her that they are “optimistic” that the agency would approve the funds based on their interactions thus far. If the SEC doesn’t object, the Volatility Shares’ 2x Ether Strategy ETF ($ETHU) will launch on June 4.

The leveraged Bitcoin futures ETF (BITX) was introduced by Volatility Shares in June of last year, six months before the BTC Spot ETFs were approved by the SEC. According to Forbes, it has since become the CME’s biggest holder of Bitcoin futures contracts.

SEC’s Misleading Stance on Ethereum

Keeping the ETF Futures ETF aside, the head of the SEC, Gary Gensler, believes that Ethereum (ETH) was a security during the previous year. As stated in a Fox Business piece from April 29, Gensler believed Ethereum to be an unregistered security for at least one year. This differs from past positions taken by the Securities and Exchange Commission (SEC) on Ethereum’s status as a commodity.

Regarding the story, a recent court filing may have more details about the timeliness of the Commission’s alleged classification of Ethereum as a security. If the newly started investigations reveal Ethereum to be a security, this would contradict the financial regulator’s previous assertions.

After receiving the SEC’s Wells Notice, Consensys filed a lawsuit in a Texas court, citing among other things that the Commission had reverted to its earlier position regarding the Ether classification. The company asserted that the SEC was trying to monopolize the Bitcoin market. A 2018 SEC report stated that the second-largest cryptocurrency was not a security. This led to allegations of bias following the Commission’s involvement in the Ripple controversy.

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