An Ethereum futures-based ETF in the US could launch as early as the first quarter of 2022, surpassing the expected approval of a Bitcoin spot ETF holding the cryptocurrency directly, Bloomberg analysts noted on Tuesday.
Last month, the SEC approved the launch of a Bitcoin futures-based ETF that uses futures contracts that track Bitcoin price movements.
In addition, ETF applications based on Ethereum futures were also filed with the SEC earlier this summer. However, VanEck and ProShares withdrew their applications on August 20, arguing that the SEC was not yet ready to give them the green light.
However, that confirmation could come next year, according to Bloomberg’s note. Bloomberg analyst James Seyffart noted that the U.S. Securities and Exchange Commission (SEC) may approve a possible Ethereum ETF as well as a spot markets-based Bitcoin ETF.
Of course, a futures-based product, similar to gold and silver ETFs, is more costly and less reliable at matching price movements than holding a cryptocurrency directly. Still, the ProShares Bitcoin Strategy ETF launch was a huge success. However, while investor demand remains strong amid an ongoing bull market in crypto, it may not be right to expect the SEC to take the next step for Bitcoin any time soon. In a Bloomberg note, “While a spot Bitcoin ETF is possible in 2022, SEC approval may take longer due to regulatory concerns in the underlying Bitcoin market.” expressions were used.
Also, a recent application for a leveraged Bitcoin futures ETF has little chance of gaining approval from the SEC, suggesting that the institution still has a tough stance on cryptocurrency regulation as it seeks to protect investors.