The United States Securities and Exchange Commission (SEC) has received a whopping 11 Ether futures exchange-traded funds (ETFs) applications in less than a week. The latest addition to this wave is ProShares, which filed its ETF application on August 3, media reports said.
The proposed ETF aims to maintain an equal balance between Bitcoin and Ether, tracking the performance of long positions in the nearest maturing monthly Bitcoin and Ether futures contracts.
ProShares is making its mark in the Ether ETF space, having filed four separate applications within just a few days. Their submissions include a dual Bitcoin and Ether futures strategy ETF, a short Ether strategy ETF, and an Ether strategy ETF.
This influx of Ether-related ETF applications, all focused on futures ETFs, began with Volatility Shares filing for the Volatility Shares Ether Strategy ETF on July 28. Other major players like Bitwise Asset Management, Roundhill Financial, Van Eck, ProShares, and Grayscale Investments swiftly followed suit, filing new Ether futures applications on August 1st.
While Bitcoin futures ETFs have been approved and available since October 2021, the SEC has never greenlit an ETF specifically tracking Ether futures contracts.
If the SEC decides not to deny any of the applications, the Ether ETFs are set to launch 75 days after their respective filing dates. The Volatility Shares ETF is anticipated to be the first to launch on October 12.
One crucial distinction between futures and spot ETF products lies in their underlying assets. Futures ETFs track the price of futures contracts, whereas spot ETFs involve the fund manager actually purchasing and holding the underlying asset. Spot ETFs are generally considered more credible as they directly involve the ownership of the asset.
The growing interest in Ether-focused ETFs comes amidst a flurry of filings from major asset management firms looking to launch spot Bitcoin ETFs. BlackRock, the world’s largest asset manager, is among those seeking approval for what could become the first spot Bitcoin ETF in the United States.
