More firms file for Ethereum spot ETFs amidst increased interest

Posted: September 30, 2023

• Futures-based Ethereum ETFs could become a reality as soon as next week.
• The introduction of these ETFs could have a significant impact on Ethereum.

Invesco and Galaxy Digital reportedly are set to file for a spot Ethereum [ETH] exchange-traded fund [ETF].

While Bloomberg ETF analyst James Seyffart revealed this filing on X (formerly Twitter), the official application had not yet appeared in the U.S. Securities and Exchange Commission’s [SEC] public database at the time of reporting.

A spokesperson from Invesco opted not to confirm the application, citing the standard practice of refraining from commenting on products still in the registration process. Galaxy Digital did not give a response at the time of reporting.

The application from Invesco and Galaxy Digital aligns with a broader trend of investment managers seeking regulatory approval for spot ETH ETFs.

Just two days before this filing, on 27 September, the SEC decided to delay decisions on previous ETF applications, extending the deadline until 26 December.

The SEC justified the extension by stating that it needed more time to fully evaluate the proposed rule change and related issues.

Invesco Galaxy just filed for a spot Ether ETF, I think this is the 3rd of 4th one of these, have to check tho.. pic.twitter.com/SIJVu8VzFk

— Eric Balchunas (@EricBalchunas) September 29, 2023

Ethereum market heats up

While a spot Ether ETF may not be available for some time, futures-based Ether ETFs could become a reality as soon as next week. On 28 September, investment firms began preparing to incorporate ETH futures products into their portfolios.

VanEck, for example, released a statement regarding its upcoming Ethereum Strategy ETF, EFUT, scheduled for listing on the Chicago Board Options Exchange in the coming days.

Valkyrie is another company venturing into the futures crypto ETF arena. The asset management firm will offer exposure to Ether futures through its existing Bitcoin [BTC] Strategy ETF, now rebranded as Valkyrie Bitcoin and Ether Strategy ETF.

A Valkyrie spokesperson explained that the firm’s Bitcoin Strategy ETF would enable investors to access both Ether and Bitcoin futures “under one wrapper.”

Bitwise also made a move in this space by submitting an updated prospectus for its equal-weight Bitcoin and Ether futures ETF on 28 September. This ETF is expected to launch in the coming week.

Additionally, according to Seyffart, Proshares applied for a futures Ether ETF, while Kelly ETFs partnered with Hashdex to introduce their own futures Ether ETFs in the near future.

The introduction of these ETFs could have a significant impact on the accessibility and adoption of Ethereum, providing investors with a regulated and potentially more convenient way to gain exposure to the cryptocurrency.