An ETF founded on ether futures may be introduced as early as the first quarter of 2022, surpassing the planned launch of a Bitcoin spot ETF containing the cryptocurrency, according to a Tuesday note from Bloomberg analysts.
Last month, the SEC approved the launch of a bitcoin futures-based ETF, which uses monthly futures contracts to disclose about bitcoin’s value movements.
Ether futures-based ETF programs were filed with the SEC before this summer, but VanEck and ProShares withdrew their candidacy on August 20, suggesting that the SEC is not yet in a position to give them the green light.
It is true that a futures contract-based approach is more expensive and less reliable at matching value movements than having a cryptocurrency directly, similar to gold and silver ETFs. assets under management.
But while investor demand remains strong in an ongoing crypto bull market, don’t expect the SEC to take the next step with bitcoin anytime soon.
“While it is possible to imagine a Bitcoin spot ETF in 2022, SEC approval may take longer due to considerations about the regulation of the underlying bitcoin market,” the Bloomberg note said.
And the SEC is unlikely to approve a recent application for leveraged bitcoin futures ETFs, indicating that the firm still has a stance from the firm on regulating cryptocurrencies as it seeks investors.