Wall Street Files 7 Ethereum ETF Applications; Will US SEC Approve?

Asset managers catering to investors in the digital currency ecosystem have gone on the offensive with troves of filings for Ethereum (ETH) Exchange Traded Fund (ETF) products in the United States.

Insights into the Ethereum ETF Filing

According to reports, a total of 7 new Ethereum-based ETFs have been filed including that from pioneer Volatility Shares. 

Some of the big names that have joined the race to list Ethereum ETFs include Bitwise which filed its application for the Bitwise Ethereum Strategy ETF; Roundhill with Roundhill Ether Strategy ETF; VanEck with Ethereum Strategy ETF; Grayscale with the Grayscale Ethereum Futures ETF (ETHG), and; ProShares which filed two different applications including Short Ether Strategy ETF and Ether Strategy ETF respectively. 

The quest for Ethereum ETF is quite justified considering the fact that the industry stakeholders are now currently anticipating the verdict on the first probable Bitcoin ETF product from the United States Securities and Exchange Commission (SEC). 

A few months back, asset management behemoth BlackRock broke the stalemate when it applied to list a spot Bitcoin ETF product. The move came as a shock to key stakeholders in the space but also re-ignited the interest of other investment firms who also re-applied to list related products in the country.

Many believe the time is ripe for the US to welcome its own Bitcoin ETF product considering the fact that its key allies including Germany, Brazil, and Switzerland have Bitcoin ETFs trading on national bourses.

Will the US SEC Approve Ether ETF?

While the United States SEC has approved a Futures-based Bitcoin ETF product from ProShares and a couple of other asset  managers, a full-blown spot Bitcoin ETF is yet to be approved. This has notably dampened the sentiment in the community.

However, considering the claims of Eric Balchunas, a Senior ETF Analyst for Bloomberg, there is “a very good chance of getting approved, and likely all of them launching on the same day, right around Oct 16th.”

Here's a look at the seven Ether Futures ETFs that have been filed, which we think have a very good chance of getting approved, and likely all of them launching on the same day, right around Oct 16th. https://t.co/kEnXpWwNps

— Eric Balchunas (@EricBalchunas) August 2, 2023

While the community is questioning the rationale for this claim, there are a number of visible triggers that might help bolster or fast track their broad approvals. The presence of BlackRock which many believe has a good market and political foothold and the forthcoming election year might change the stance of the SEC and the Biden administration at large.