A new wave of applications for Ethereum futures exchange-traded funds (ETH Futures ETF) has hit the U.S. Securities and Exchange Commission (SEC) as six major asset managers, including Grayscale and VanEck, seek to launch ETH ETFs for United States customers. Alongside Grayscale and VanEck, other notable players like Bitwise, Volatility Shares, ProShares, and Round Hill Capital have also submitted separate filings outlining their respective ETH futures ETF proposals.
Grayscale, Volatility Shares, and VanEck Lead the Pack for ETH Futures ETF
Among the key players seeking to offer ETH Futures ETFs, Grayscale stands out with two applications: the Grayscale Global Bitcoin Composite ETF and the Grayscale ETH Futures ETF. Grayscale’s Ether ETF will invest in futures contracts listed on the Chicago Mercantile Exchange, focusing on “front-month” Ether futures with the shortest time to maturity. Meanwhile, Volatility Shares intends to list an Ether futures ETF, investing in cash-settled contracts referencing ETH on the same exchange.
Volatility Shares clarified that its fund would not invest directly in Ether but instead enter into cash-settled Ether futures contracts as the buyer. On the other hand, VanEck’s filing highlights an investment strategy focused on ETH futures contracts to ensure the ETF’s exposure to ETH’s value remains equal to 100% of the total assets of the fund.
A Growing ETF Trend for Cryptocurrencies
The latest applications for ETH futures ETFs follow the increasing trend of mainstream asset management firms seeking to launch Bitcoin ETFs. Notably, financial giants like BlackRock are also exploring the possibility of offering the first Bitcoin ETFs in the country. While the SEC has yet to approve a spot Bitcoin ETF, the applications for both Bitcoin and Ethereum ETFs indicate a growing interest in cryptocurrencies among traditional asset managers. With eight spot Bitcoin ETF applications currently under SEC review, experts believe that the approval rate for Bitcoin ETFs may be higher, especially given BlackRock’s involvement.
The surge in applications for Ethereum futures ETFs signals growing confidence in the cryptocurrency market among prominent asset managers. As Grayscale, VanEck, and other major players pursue ETH ETFs, the SEC’s decision will have a significant impact on the cryptocurrency industry’s future. While the establishment of a market surveillance mechanism could ease the approval process for existing ETF applications, the path to securing an ETF remains challenging. The community eagerly awaits the SEC’s decision, and with each new application, the prospects for the cryptocurrency ETF market continue to evolve.