The latest approval of Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) formally establishes Ethereum’s standing as a non-security, former CFTC Chairman and Head of Policy at a16z Crypto, Brian Quintenz, posted on X immediately.
On October 2, a complete of 9 ETF merchandise designed to trace futures contracts tied to the worth of Ethereum’s native foreign money, Ether, had been launched to the market.
Of these, 5 solely maintain Ether futures, whereas the remaining 4 observe a mix of Bitcoin and Ethereum futures contracts.
Grayscale can be trying to convert its Ethereum Trust into right into a spot Ethereum ETF.
Ethereum ETFs Saw Less Than $2 million in Total Trading Volume on Day 1
Among the newly launched ETFs, Valkyrie’s BTF, which tracks a mix of Bitcoin and Ether, led the way in which with a complete buying and selling quantity of $882,000.
Worth noting is that BTF had been buying and selling as a Bitcoin-only futures ETF since October 2021 however adjusted its technique to incorporate Ethereum.
Comparing the preliminary buying and selling quantity of those Ether ETFs to the debut of the ProfessionalShares Bitcoin Strategy ETF (BITO) in October 2021, it is clear that Ethereum’s reception has been extra subdued.
BITO witnessed over $1 billion in buying and selling quantity on its first day.
Eric Balchunas, a senior Bloomberg ETF analyst, identified that whereas the Ether ETFs’ buying and selling quantity could seem modest, it’s comparatively substantial when in comparison with typical conventional finance ETF launches.
However, he famous that buyers usually want spot ETF merchandise over these based mostly on futures contracts.
Balchunas additionally highlighted the SEC’s choice to launch all these ETF merchandise on the identical day, a transfer aimed toward stopping any single fund from gaining market dominance.
Volatility Shares Cancels Plans to List ETH Futures ETF
Despite the rising curiosity in Ether futures and ETFs, some companies are cautious about getting into this market.
Volatility Shares, an ETF supplier, lately canceled its plans to record an identical product, citing an absence of alternatives within the present surroundings.
As the cryptocurrency market continues to evolve, the approval of Ethereum ETFs signifies a big regulatory growth.
The former CFTC chairman additionally opined on the event:
It’s ridiculous and insulting that it took so lengthy to get right here, however it’s a giant win for the crypto area, and extra importantly for the way forward for the web.
https://cryptonews.com/news/us-secs-ethereum-etf-approval-officially-confirms-its-non-security-status-says-former-cftc-chairman.htm
