SEC Set to Approve First Ethereum Futures ETF, Positive Sentiments Ripple Through Market

According to Bloomberg sources, the SEC is all set to approve the very first Ethereum Futures Exchange-Traded Fund (ETF), a move that could have significant changes to the ecosystem for both Ethereum and the broader crypto assets. SEC has had severe criticism for being overtly bearish on crypto assets but if this news is true this could change people’s perspective for the regulatory giant.

The news is indeed a breeze for crypto investors as many are expecting Bitcoin ETF approval soon. The Ethereum Futures ETF, set to be introduced by Valkyrie, is anticipated to make its debut on October 3rd or 4th. With this big step, investors would be able to buy and sell Ethereum directly through a traditional stock market, the same way they trade stocks of companies like Apple or Tesla.

The market has already responded on a positive note as Ethereum Futures ETF has sparked positive ripples in the market. Within just 20 minutes of the news breaking, Ethereum’s price surged by 11% to reach $1,717, bouncing back from a dip that occurred earlier in the day.

The community’s reaction was mixed on the news is mixed. As many think this leaked news may be a trap to sell the short positions.

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If the ETH Futures ETF news is accurate, it may be even bigger than first meets the eye.
The SEC cannot really both simultaneously argue that ETH is some new intrinsic “crypto asset security” that is unregistered, and approve an ETH Futures ETF. pic.twitter.com/rB6TKjGdtR
— Adam Cochran (adamscochran.eth) (@adamscochran) August 17, 2023

Just realized, that tomorrow, Friday 18th in the US, Grayscale could get their ETF approval. This info may have leaked and people are going long GBTC and Short BTC. And if you look, that’s what’s happening… GBTC discount down (aka people buying GBTC) and BTC down (aka selling… pic.twitter.com/UKkn4oVDP7
— Dr. Julian Hosp (@julianhosp) August 17, 2023

In the meanwhile, the SEC’s move in the realm of lawsuits is quite noteworthy and could be a sign of the agency to accept crypto assets to revive the down economy. Notably, other players in the industry, such as ProShares, Volatility shares, Bitwise, and Roundhill, have also submitted applications for Ethereum-based ETFs.

It is also worth noting that, Ethereum Futures ETF has all the ability to pump the Ethereum’s value. ETH has been struggling hard to retain its support level at $1700 At present. However, Ethereum’s market cap stands at $192 billion and is expected to reach another level once the ETF is approved.

Now all eyes are on SEC giving the green light for Spot Bitcoin ETFs, as it will pour in new money to the system by giving opportunity for major institutions to enter the market without fear.

Source: https://coinpedia.org/news/sec-set-to-approve-first-ethereum-futures-etf-positive-sentiments-ripple-through-market/