ETF Ethereum: Six financial companies including Grayscale file an application

Six investment companies have applied for Ethereum futures ETFs. While the SEC has issued a warning over similar demands before, all six companies are well on their way to the chase. This craze comes after Volatility Shares submitted a similar request to the SEC. It remains to be seen whether the American regulator is ready to approve this type of financial product.

The Ethereum ETF race is back

Volatility Shares, Roundhill, Grayscale, Bitwise, Proshares and VanEck have filed an Ethereum ETF application with the SEC, an analyst at Bloomberg reported. This round of requests comes after Volatility Shares filed with the SEC on July 28. This is an Ethereum ETF strategy that revealed the potential of the Ethereum futures ETF market. The latter effectively seek to achieve financial goals by investing in cash-settled contracts trading on the CME.

As a reminder, Grayscale has already offered plans to launch an Ethereum futures ETF in May. Joined shortly after by Direxion, Bitwise and Roundhill, the four companies however abandoned their projects. For good reason, the SEC issued warnings stating that the agency was not ready to approve such products.

Will the SEC approve Ethereum ETF applications?

The SEC is uncertain about Ethereum ETFs for different reasons. Is it a raw material or a title? Are liquidity levels sufficient for CME futures? These uncertainties may be the reason for the SEC warning. But sooner or later, the agency will have to study the question and decide on these numerous requests.

Additionally, the SEC approved the first Bitcoin ETF in 2021 along with several similar products. Currently, she is handling new applications for Bitcoin ETFs by many investment firms, including BlackRock and Invesco. It has already published a few applications in the federal register in mid-July. The deadline for ruling is 45 days from publication, but can be extended to 90 days if the SEC deems it necessary.