On Sept. 29, investment powerhouses Invesco and Galaxy Digital reportedly shook up the market by filing for a spot Ethereum exchange-traded fund (ETF) with the U.S. SEC. This move comes amidst a persistent trend among asset managers who are actively exploring digital asset products.
Early Buzz: Breaking News Revealed by Bloomberg Analyst
Breaking the news was Bloomberg ETF analyst James Seyffart, who unveiled the filing on X (formerly Twitter). Notably, the application had not yet surfaced on the SEC’s public database as of the time of this report.
Notably, Invesco’s spokesperson refrained from confirming the application, citing the protocol around products still in the registration phase. However, Galaxy Digital remained tight-lipped, with no immediate response to inquiry.
Joining the Race for Regulatory Approval
With the Sept. 29 filing, Invesco and Galaxy Digital join a burgeoning cohort of investment managers seeking the regulatory green light for a spot Ether ETF. Notably, the SEC recently deferred decisions on similar applications from ARK 21Shares and VanEck, extending the deadline to Dec. 25–26.
Undoubtedly, a spot Ether ETF might take time to materialize. However, investors can anticipate futures-based Ether ETFs hitting the market as early as next week. Notable players, including VanEck and Valkyrie, have already made significant strides in this direction.
VanEck’s Ethereum Strategy ETF
VanEck is set to launch its Ethereum Strategy ETF, known by the ticker EFUT, on the Chicago Board Options Exchange in the coming days. This strategic move follows the SEC’s delay in decisions on spot Ether ETF applications.
Valkyrie’s Double Play: Bitcoin and Ether Strategy ETF
Valkyrie takes an innovative approach by offering exposure to Ether futures through its existing Bitcoin Strategy ETF, now rebranded as Valkyrie Bitcoin and Ether Strategy ETF. This streamlined approach aims to provide investors with access to both Ether and Bitcoin futures under a single wrapper.
The momentum doesn’t stop there. Bitwise submitted an updated prospectus for its equal-weight Bitcoin and Ether futures ETF, expected to go live next week. Proshares, too, is in the mix, alongside Kelly ETFs, which has partnered with Hashdex to roll out futures Ether ETFs in the coming days.
As the market anticipates the debut of futures ETFs, Ether is currently trading in the green at $1,666. The excitement surrounding the evolving ETF landscape seems to be a significant driver for this positive market sentiment.