US SEC Poised to Approve Ethereum Futures ETFs Next Week

Crypto analysts have indicated that futures exchange-traded funds (ETFs) could be launched as early as next week, coinciding with a possible U.S. government shutdown. On September 28, Bloomberg Intelligence analyst James Seyffart shared on social media that the U.S. Securities and Exchange Commission (SEC) might approve several Ethereum futures ETFs soon.

Seyffart’s comments responded to ETF analyst Eric Balchunas, who noted that the SEC appears eager to expedite the approval process. Balchunas mentioned that the agency intends to resolve the Ether futures ETFs before any potential government shutdown takes effect.

He pointed out that various applicants have been instructed to update their filings by Friday afternoon to allow trading to commence on the following Tuesday. The U.S. government faces a shutdown at 12:01 a.m. ET on October 1 if Congress cannot agree on funding for the new fiscal year. Such a funding gap could influence financial regulators and other federal entities.

While the analysts did not reveal specific sources, they mentioned that there are currently 15 Ethereum futures ETFs from nine applicants awaiting approval. Companies like VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill have submitted proposals for Ethereum futures or hybrid ETF products.

On September 27, analysts estimated a 90% chance that Ethereum futures ETFs would launch in October. They noted that Valkyrie’s futures product is on track to be the first to include Ethereum exposure, with trading expected to start on October 3.

The analysts expressed optimism: “We expect pure Ethereum futures ETFs to begin trading the following week, thanks to actions taken by Volatility Shares.” However, they warned that not all proposed ETFs may receive approval.

The anticipation surrounding Ether futures ETFs has already impacted the market. A report in August suggested potential approval in October, which contributed to an 11% increase in ETH prices. Currently, ETH values have seen a slight rise of 1%, hovering just above $1,600.

Historically, crypto futures products have not garnered as much attention as those based on spot prices. Bitcoin futures ETFs have been available in the U.S. since 2021, establishing a foundation for similar Ethereum offerings.