Now that Bitcoin Futures ETF is in the box, is an Ethereum ETF next?

  • Speculation is mounting high on the approval of an Ethereum futures ETF, now that the SEC has approved a Bitcoin one.
  • An ETH ETF is likely since the SEC has previously said the digital asset is not a security.

With the recent approval of a Bitcoin (BTC) futures exchange-traded fund (ETF), Ethereum (ETH) might just be next in line, per the crypto social media buzz. Crypto market leaders, such as Lark Davis of the Wealth Mastery newsletter, are convinced of this possibility. Davis noted how Ethereum has been “pumping” as market hopes get on high for a Bitcoin ETF.

At press time, ETH was exchanging hands at $3,875, just $325 shy from its record all-time high of $4,200. The crypto asset has also advanced by over 400 percent year-to-date, and analysts think the bull run has just begun. Technical analysts from Fundstrat research house believe the digital asset is set for a breakout leading to a new record high of $4,900.

Crypto trader and investor behind “The Wolf of All Streets” podcast, also predicted a “coming eventually” of an Ethereum ETF.

Is an Ethereum ETF coming soon?

Additionally, investment management firms have their wheels turning with anticipation of the same. VanEck and ProShares put in applications with the US Securities and Exchange Commission (SEC) for an Ethereum ETF in August. However, shortly afterward, both withdrew the proposals after doubts arose on the approval of such a product this year.

Other firms, however, remain hopeful, with a handful of Ethereum ETF applications based on ETH spot market prices pending with the SEC. These belong to companies such as Kryptoin Investment Advisors and Gemini Trust Company.

Despite great uncertainty looming on cryptocurrencies’ financial classification, SEC officials previously clarified that Ethereum is not a security. The coin also dominates 18.4 percent of the crypto market, according to CoinMarketCap, up from 17.5 percent last week.

Furthermore, since the start of the year, activity on the Ethereum network has surged hugely. Ethereum’s popularity is attributed to the rise of decentralized finance (DeFi) applications and non-fungible tokens (NFTs). ETH has also been driven up by the broader market rally. Therefore, the possibility of an Ethereum ETF is not too far-fetched.

Crypto Futures ETF

SEC boss Gary Gensler seems to lean more on crypto futures ETFs rather than spot market funds. Should an ETH ETF maturate, it will likely follow in the footsteps of ProShares’ Bitcoin futures-based Bitcoin Strategy ETF.

However, analysts still caution that crypto futures ETF will come with extraordinarily high fees compared to directly purchasing the asset. Additionally, a crypto asset’s price may drastically drop should the SEC deny it a futures ETF.

Meanwhile, the SEC’s approval of a Bitcoin Futures ETF has created room for greater investor interest in the digital asset. On Friday, BTC hit the $60,000 mark, a new multi-month high, just $5,000 away from it’s all-time high. At press time, BTC was trading at $62,576, 2.9 percent up in the day.

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