Ethereum Futures ETFs May Debut in U.S. Next Week, Despite Looming Government Shutdown

Futures exchange-traded funds (ETFs) may begin trading in the United States as soon as next week, pending approval from the U.S. Securities and Exchange Commission (SEC), according to analysts Eric Balchunas and James Seyffart. This potential move follows the SEC’s recent delays in making decisions regarding Ark Invest and VanEck’s applications for ETH spot ETFs.

During discussions on Thursday, Balchunas and Seyffart suggested that the SEC is keen to expedite the introduction of Ethereum futures ETFs. Balchunas highlighted that the SEC is motivated to resolve this matter before the possibility of a U.S. government shutdown. If Congress does not reach an agreement or secure funding for the new fiscal year by 12:01 am ET on October 1, a partial government shutdown could hinder many non-essential operations of federal agencies, including those of financial regulators.

To prepare for this possibility, it has been reported that applicants for Ethereum futures ETFs were asked to update their documentation by Friday afternoon, potentially allowing them to begin trading as early as Tuesday, October 3. Seyffart supported Balchunas’ view, indicating that it seems likely “the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially,” although they did not reveal the sources of their information.

As of September 27, there are currently 15 Ethereum futures ETFs from nine different issuers waiting for SEC approval. The analysts believe these ETFs have a 90% chance of launching in October. They also anticipate that Valkyrie’s futures product will be the first to hold Ethereum exposure on October 3, with other pure Ethereum futures ETFs likely to start trading the following week due to actions from Volatility Shares.

In contrast, Ether spot ETFs remain in a state of uncertainty. The SEC recently extended the deadlines for the applications from ARK 21Shares and VanEck for Ether spot ETFs, citing the need for more time to consider the proposed rule changes and related matters. No public comments were received on either application. The new deadlines for potential delays or decisions regarding these Ethereum spot ETFs are December 25 for VanEck and December 26 for ARK 21Shares.

As of Thursday, Ether was trading at $1,617, which represents a 1.6% increase over the previous 24 hours.