- Nine funds have demonstrated readiness to go in the Ether Futures ETF Derby beginning October 2.
- ETF excerpts have given the list of ETH futures ETFs that could get accelerated approval to go live by Monday.
- Eric Balchunas and James Seyffart anticipate a simultaneous launch calling it fascinating experiment and great foreshadow/undercard to the spot race.
Ethereum futures exchange-traded funds (ETFs) are the latest trend in the crypto market, with institutional players switching lanes after the US Securities and Exchange Commission (SEC) delayed decisions on Bitcoin Spot ETFs.
Ethereum futures ETFs take precedence
Ether futures ETFs are taking precedence over Bitcoin spot ETFs, an outcome that appears to be boding well for Ethereum price while the rest of the market suffers the wake of numb volatility. Ethereum price is up almost 5% in the last week while Bitcoin price is up a meager 3%.
Also Read: Ethereum price outperforms Bitcoin on speculation that SEC may approve ETH futures ETF sooner
It comes as firms line up to launch their Ether futures ETFs come Monday, October 2. Bloomberg Intelligence analyst and ETF expert James Seyffart and colleague Eric Balchunas have given a list of possible ETH futures ETFs set to debut on Monday. The list of nine funds will be issued by VanEck, BitWise, ProShares, Valkyrie, Kelly ETFs, and Volatility Shares.
ETFs set for October 2 listing
This list bases on the assumption that they are all operationally ready to go and that there will not be any last-minute entrants. It is worth mentioning that Hashdex ought to have been on the list, but then the firm’s partnership with Kelly will not be happening.
According to Seyffart, the combined assets under management (AUM) for all the nine ETH futures ETF products could range between 100 and 200 million. Balchunas has given the same estimate for the total AUM for the nine issuers, basing his assumption on the logic that BTC futures did $1 billion while ETH funds globally have 20% the AUM of Bitcoin funds. The ETF expert also anticipates that issuers will tap their client list to get as much volume or flow as they can get early.
With expectations of an announcement early Monday around 9:30 AM, Balchunas says the simultaneous premiere will be unprecedented. Specifically, having this many ETFs doing the same thing launching same day will make for a “fascinating experiment and great foreshadow or undercard to the spot race.”
New record as 68 ETFs launched on September
As a side note, up to 68 ETFs have launched in September alone, without including the list of nine expected to debut on Monday. It translates to a pace of more than three per day. According to Balchunas, which is a new all-time record.
Sixty-eight ETFs launched in September
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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