Previously, it was observed that after the announcement of a spot Bitcoin ETF by asset management firm BlackRock, it caused a significant movement in Bitcoin and attracted many investors and whales toward Bitcoin. Along with BlackRock, several other asset management firms, including Invesco, VanEck, Wisdomtree, Fidelity, and ARK Invest, have submitted their spot ETF applications to the United States Securities and Exchange Commission (SEC).
Following the recent hype around bitcoin spot ETFs, several entities have also submitted applications to the SEC for ether (ETH) futures-based exchange-traded funds (ETFs). The first applicant was Volatility Shares, which filed on July 28. Volatility Shares gained attention in June for launching the first leveraged crypto ETF in the U.S., the 2x Bitcoin Strategy ETF (BITX).
Within just 24 hours after Volatility Shares, five more entities joined the race: Bitwise Ethereum Strategy ETF, VanEck Ethereum Strategy ETF, Roundhill Ether Strategy ETF, ProShares Short Ether Strategy ETF, and Grayscale Ethereum Futures ETF. Despite nearly ten prior attempts, it’s worth noting that the SEC has never approved any ETF applications tracking Ethereum futures contracts.
Whereas, On June 26, 2023, HSBC launches Bitcoin and Ethereum ETFs on the Hong Kong exchange, becoming the first bank in the region to do so. Marks a significant breakthrough for crypto adoption in the financial world.
In a recent report by Todayq News on August 2, 2023, Ethereum’s native token, Ether, hit a six-week low of $1,815 during Asian trading hours amid bearish sentiment. Traders bet on further weakness in the options market, likely due to concerns about potential SEC regulations on cryptocurrencies (excluding Bitcoin). Ethereum’s revenue has significantly declined, affecting its value.
Due to regulatory uncertainty, Ethereum’s price remains in a sideways movement. It recently recovered to around $1,860 after briefly dropping below $1,700 in mid-June, but it has not seen significant upward movement since then.
While under the leadership of Gary Gensler, the SEC has been cautious about approving crypto-related investment products, especially those unrelated to Bitcoin. In Gensler’s perspective, most digital assets other than Bitcoin are considered securities, adding to the uncertainty surrounding ETF applications.
It is also observed that any positive news around the Spot Bitcoin ETF may cause a significant move in Bitcoin. The ETF expert, James Seyffart, also stated that the approval of a Bitcoin ETF might attract more investors and could lead to higher investment inflow. The upcoming weeks will undoubtedly be crucial in determining the fate of these Ethereum ETF applications, and the crypto community is closely monitoring how the SEC’s decisions will impact the market.