After rejecting VanEck’s request for a spot Bitcoin ETF last week, the US Securities and Exchange Commission (SEC) made its position clear on spot market pegged crypto ETFs.
Although the rejection was not unexpected, SEC Chairman Gary Gensler had previously stated that the crypto industry is not yet mature enough to manage a spot ETF. Now it appears that the SEC would prefer to approve an Ether Futures ETF over a spot BTC ETF.
By the first quarter of next year, according to Bloomberg Intelligence analyst James Seyffart, the crypto industry could see its first Ethereum Futures ETF. “, he explained.
“Most market participants agree that a spot Bitcoin ETF would be superior to existing futures ETFs, yet SEC approval of the former may be delayed until late 2022 or beyond. Though a spot Bitcoin ETF is possible in 2022, SEC approval may take longer due to concerns about regulation in the underlying Bitcoin market,”
Last month, the US Securities and Exchange Commission (SEC) made history by approving two Bitcoin Futures ETFs, nearly four years after the original Bitcoin ETF petition. However, it maintains a similar position on the spot ETF, stating that the market is susceptible to manipulation. This has many in the crypto community riled up, as the market has surpassed $3 trillion this year and institutional demand has hit new highs.
Bitcoin Spot ETF vs. Ethereum Futures
Following the SEC chairman’s comments on the Futures ETF market, numerous firms either withdrew or filed a futures ETF application. MoneyTree and Galaxy Digital are among the companies that have applied for an Ether Futures ETF. Many people, according to Sam Bankman-Fried, co-founder and CEO of crypto exchange FTX, will not be surprised by the approval of the Eth Futures ETF. He clarified,
“Ethereum maybe, I don’t know, but it might be upon speculation that there might be an Ethereum futures-based ETF as well — that would not be a surprising development,”
