In the highly competitive race to launch the first Ether Exchange-Traded Fund (ETF), the Securities and Exchange Commission (SEC) is facing an avalanche of applications from various firms eager to gain approval. Among the frontrunners, ProShares has recently taken a significant step, filing for an Ether ETF, contributing to a total of 11 Ether-based filings submitted within a week.
The surge in Ether ETF applications is a response to the increasing demand from investors and institutions seeking exposure to the second-largest cryptocurrency by market capitalization.
ProShares’ ETF Proposal
On August 3, 2023, ProShares submitted an ETF application outlining a unique equal-weight ETF. This proposed ETF will track the performance of Bitcoin and Ether futures contracts that mature monthly, providing investors with a regulated and easily tradable vehicle to access the price movements of both leading cryptocurrencies.
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Prominent ETF analyst James Seyffart recently tweeted that fund manager ProShares has filed four separate Ether-based ETF applications in just a few days. These filings include Bitcoin and Ether futures options, a short Ether Strategy ETF, and an Ether Strategy ETF.
Fierce Competition among Industry Players
The overwhelming influx of Ether-related ETF applications has been remarkable, with a total of 11 filings submitted in the past week. All of these applications are focused on futures ETFs, as firms strive to create investment vehicles tied to the performance of Ether without directly holding the underlying asset.
From Volatility Shares to Major Players: A Swift Movement
The trend began with Volatility Shares, which filed for the Volatility Shares Ether Strategy ETF on July 28. Soon after, prominent players in the financial industry like Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments joined in, submitting new Ether futures ETF applications on August 1.
An essential distinction gaining attention is the difference between futures and spot ETF products. Futures ETFs track the price of futures contracts, while spot ETFs involve the issuer directly purchasing and holding the underlying asset. The latter is widely perceived as more legitimate since it offers direct exposure to the asset itself.
Waiting on SEC Approval
It is noteworthy that, unlike Bitcoin futures ETFs, the SEC has not yet approved any ETFs that track Ether futures contracts. The launch of the Ether ETFs is scheduled for 75 days after their respective filing dates, with the Volatility Shares ETF expected to launch on October 12, assuming the SEC does not reject any of the applications.
Read More: Fundstrat’s Tom Lee Optimistic: Bitcoin Rallying to $200K Amid Spot BTC ETF Potential
The Financial Markets
The surge in Ether-focused ETF applications is part of a broader trend in the financial markets, with major asset management firms also seeking to launch spot Bitcoin ETFs. Among the prominent players looking to offer the first spot Bitcoin ETF in the United States is BlackRock, the world’s largest asset manager.
As the SEC evaluates these applications, the crypto community eagerly awaits a decision that could significantly impact the accessibility and appeal of cryptocurrency investments for mainstream investors.
Source: https://coinpedia.org/news/ether-etf-applications-flood-sec-proshares-joins-the-race/