Ethereum price outperforms Bitcoin on speculation that SEC may approve ETH futures ETF sooner

• Ethereum price has acquired momentum to outperform Bitcoin price in both hourly and daily gains.
• The surge comes as rumors of an ETH futures ETF approval beating a spot BTC ETF continue to grow.
• The approval would be a big win for firms looking to offer the product, including ProShares, and VanEck, among others.

Ethereum (ETH) price has gained momentum, showing more strength than Bitcoin price despite BTC’s influence in driving altcoins in the crypto market. The outpacing comes as more traders are betting on ETH, following growing speculation of an Ethereum Futures Exchange Traded Fund (ETF) coming ahead of a spot BTC ETF.

ETH/USDT 1-day chart, BTC/USDT 1-day chart

Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: If BTC finds its footing, altcoins will easily follow

Ethereum futures ETF likely to get an approval

The ETF mania continues to hold out, although with a different candidate- ETH futures. With numerous asset managers having submitted their prospectuses, chatter indicates that the US Securities and Exchange Commission (SEC) is likely to grant approval, with experts forecasting an October decision.

The debut of a pioneering US-listed Ether strategy has seen Ethereum price outperform that of BTC.

BTC vs ETH CoinMarketCap

This anticipation has inspired multiple requests from firms looking to offer the futures-based ETF, with the likes of Volatility Shares, Bitwise, Roundhill, and ProShares taking the front-row seats among three other companies that have filed applications to launch cryptocurrency futures ETFs.

It is worth noting that the SEC is reviewing the applications. The approval would be a big win for firms looking to offer the product, including ProShares, VanEck, Roundhill, Volatility Shares, Direxion, Bitwise, and Valkyrie.  

Bloomberg noted that “the endorsement of the US official is virtually certain,” citing unnamed sources. According to Ron Geffner, partner at Sadis & Goldberg, “The SEC sources indicate that the government may allow several ETH futures exchange-traded funds to launch in October,” adding that:

If the ETFs launch, they would be the first U.S.-listed ETFs tied to Ether, the second most valuable cryptocurrency by market cap.

An ETF specialist, Eric Balchunas, has corroborated this speculation. 

To reiterate, if the regulator does approve an ETH futures ETF, it would mark a watershed moment for Ether (ETH), considering it would be the first time such a product goes live in the US.

The allure of spot BTC ETF despite stronger hope for ETH futures ETF approval

Meanwhile, even the spot BTC ETF camp also continues to hold out hope for approval. Renowned firms like BlackRock and Cathie Wood’s Ark Invest tow this chain, with experts predicting that a “yes” from the financial regulator could provide the impulse needed to catalyze a strong bullish momentum.

Also Read: Could spot ETF trigger BTC rally to $50,000?

More broadly, an approval of this demeanor would clear the path for investors, despite their tuff, to participate in the crypto market without having to deal through a crypto exchange.

Nevertheless, regulatory uncertainty continues to hold the market hostage, particularly where disruptive innovations are concerned. Despite this standing, industry sleuths still stand in awe, trying to understand why the SEC has shown this much in incoherence where crypto ETFs are concerned. With some questioning the logic behind the regulator’s decision, the SEC’s legal standoff with industry powerhouses likes Binance, Coinbase, and Ripple Labs continues to influence the market. For the case of Binance, BNB is taking the heat and pressure, falling 7% in losses over the last week.

Regardless, traders remain bullish acknowledging the interest of traditional finance players and institutional money into the cryptocurrency industry. Specifically, BlackRock, an asset manager with over $9.1 trillion in AUM (assets under management) points to a growing intimacy between the two sectors in the financial market.

Also Read: SEC could approve multiple Ether ETFs soon while delaying Bitcoin spot ETFs

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