{"id":55897,"date":"2023-08-03T05:34:27","date_gmt":"2023-08-03T09:34:27","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=55897"},"modified":"2023-08-03T05:34:31","modified_gmt":"2023-08-03T09:34:31","slug":"sec-considers-ethereum-futures-etfs-amid-growing-demand","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/sec-considers-ethereum-futures-etfs-amid-growing-demand\/","title":{"rendered":"SEC Considers Ethereum Futures ETFs Amid Growing Demand"},"content":{"rendered":"\n<p>The US <a href=\"https:\/\/coinscreed.com\/staging\/u-s-securities-and-exchange-commission-musk-twe.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Securities and Exchange Commission (SEC)<\/a> is reportedly ready to consider new applications for exchange-traded funds (ETFs) based on Ethereum futures contracts.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/Ethereum.jpg\" alt=\"SEC Considers Ethereum Futures ETFs Amid Growing Demand\" class=\"wp-image-55899\" width=\"802\" height=\"481\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/Ethereum.jpg 1000w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/Ethereum-300x180.jpg 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/Ethereum-768x461.jpg 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/Ethereum-750x450.jpg 750w\" sizes=\"(max-width: 802px) 100vw, 802px\" \/><\/figure>\n\n\n\n<p>Several prominent investment firms, such as <strong>ProShares, VanEck, and Volatility Shares,<\/strong> have filed their proposals to offer this innovative product to investors who want to bet on the future price of the <a href=\"https:\/\/coinscreed.com\/staging\/how-ethereum-is-reshaping-the-future-of-finance.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">second-largest cryptocurrency.<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-ethereum-futures-etfs-work\">How Ethereum Futures ETFs Work<\/h3>\n\n\n\n<p>Ethereum futures ETFs are investment vehicles that track the performance of contracts that promise to deliver Ether at a specified price and date in the future. <\/p>\n\n\n\n<p>These contracts are traded on regulated platforms, such as the <a href=\"https:\/\/www.cmegroup.com\/markets\/cryptocurrencies\/ether\/ether.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Chicago Mercantile Exchange (CME),<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> which launched its Ether futures product in February 2021.<\/p>\n\n\n\n<p>Investors who buy shares in an Ethereum futures ETF do not hold the underlying cryptocurrency directly but rather speculate on its price movements. <\/p>\n\n\n\n<p>This way, they can gain exposure to Ether\u2019s volatility and potential growth without dealing with the technical and regulatory challenges of holding and transferring digital assets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Factors Influencing the Turning Point<\/h3>\n\n\n\n<p>According to <a href=\"https:\/\/blockworks.co\/news\/sec-consider-ether-futures-etfs\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Blockworks,<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> two sources familiar with the matter have revealed that the SEC is now willing to review and discuss the possibility of approving Ethereum futures ETFs after previously advising firms to halt their efforts in May. <\/p>\n\n\n\n<p>This change of attitude could be attributed to several factors, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The growing popularity and liquidity of Ether futures contracts on the CME and other platforms indicate a strong demand and interest from institutional and retail investors.<\/li>\n\n\n\n<li>The increasing adoption and innovation of Ethereum as a blockchain platform that supports various applications, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contracts.<\/li>\n\n\n\n<li>The ongoing transition of Ethereum from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) one aims to improve the network's scalability, security, and sustainability.<\/li>\n<\/ul>\n\n\n\n<p>Henry Jim, an analyst from Bloomberg Intelligence, commented on this development on <a href=\"https:\/\/twitter.com\/ETFhearsay\/status\/1686495327333863424\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Twitter<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>, saying that <em>\u201cthe odds for an Ether futures ETF approval this year have gone up considerably.\u201d <\/em><\/p>\n\n\n\n<p>He also noted that <em>\u201cthe SEC seems to have a soft spot for futures-based crypto products,\u201d<\/em> referring to the regulator's recent approval of Bitcoin futures ETFs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Securities and Exchange Commission (SEC) is reportedly ready to consider new applications for exchange-traded funds (ETFs) based on Ethereum futures contracts. Several prominent investment firms, such as ProShares, VanEck, and Volatility Shares, have filed their proposals to offer this innovative product to investors who want to bet on the future price of the [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":55899,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[899,128,4288],"class_list":["post-55897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news","tag-etfs","tag-ethereum","tag-us-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/Ethereum.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/55897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=55897"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/55897\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/55899"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=55897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=55897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=55897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}