Riding the Digital Wave: ETH ETF Frenzy

Martin Walker
Oct 1, 2023 at 07:26 am

Asset managers are actively navigating the digital asset landscape, steering their focus towards a burgeoning array of digital asset offerings. In a recent development, both Invesco and Galaxy Digital reportedly embarked on the journey of filing for a spot Ether (ETH) exchange-traded fund (ETF) on the 29th of September, a date now etched in the annals of financial movements. Interestingly, the ticker prices at this moment dance at the tune of $1,679, an elusive number in the ever-shifting tapestry of cryptocurrency valuations.

The ETF analyst at Bloomberg, James Seyffart, caught wind of this filing and took to the digital airwaves on X (formerly Twitter) to bring this news into the collective consciousness. However, it's worth noting that the application, akin to a nascent seed, had not yet found its way into the SEC's public database at the time of this narrative.

In response to inquisitive minds seeking confirmation, a spokesperson from Invesco chose to abide by the regulatory chalice, declining to confirm or deny the application. Regulatory protocols dictate that products still in the throes of registration cannot be openly commented upon. Similar efforts to reach out to Galaxy bore no immediate fruit, leaving the inquiry shrouded in digital silence.

The filing on the 29th of September places Invesco and Galaxy into the burgeoning queue of investment managers, patiently waiting in line, seeking the nod of regulatory approval for a spot ETH ETF. Curiously, on the 27th of September, the SEC decided to pause and reflect on previous applications from ARK 21Shares and VanEck, extending the deadline to the festive season of December 25th–26th. The SEC, adopting a tone of prudence, remarked, "The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein."

While the prospect of a spot Ether ETF adorning the financial landscape may hold a certain allure, the reality is that it may take its time to materialize, like the slow, deliberate growth of a stalwart oak tree. However, on the contrary, futures-based Ether ETFs could potentially be unfurled as early as the next week. Indeed, the investment landscape has been abuzz with activity since the 28th of September, as firms geared up to welcome ETH futures vehicles into their portfolios. Notably, VanEck released a statement on the said date, offering insights into its upcoming Ethereum Strategy ETF, going by the ticker EFUT, poised to join the ranks on the Chicago Board Options Exchange in the coming days.

Valkyrie, a company with a vision and a mission in the crypto sphere, is also making its debut in the crypto futures ETF realm. They set sail into these uncharted waters with Ether futures through their existing Bitcoin Strategy ETF, now rebranded as Valkyrie Bitcoin and Ether Strategy ETF. A spokesperson from Valkyrie affirmed that the firm's Bitcoin Strategy ETF would present a unique opportunity for investors, granting them access to Ether and Bitcoin futures, all neatly packaged "under one wrapper."

In the grand tapestry of financial movements, Bitwise unfurled an updated prospectus for their equal-weight Bitcoin and Ether futures ETF on the 28th of September, setting the stage for an anticipated debut in the forthcoming week. Adding to the saga, Seyffart revealed that Proshares had also thrown their hat in the ring, joined by Kelly ETFs, who had partnered with Hashdex, promising a bouquet of futures Ether ETFs in the imminent days.

As the sands of time swiftly traverse, Ether is seen basking in the verdant pastures of positivity, trading at a commendable $1,666. The driving force behind this surge lies in the euphoria that accompanies the debut of futures ETFs, a testament to the ever-evolving narrative of the crypto landscape.

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