Bloomberg analysts have indicated that Ethereum (ETH) futures exchange-traded funds (ETFs) might launch as soon as next week. This move is expected to precede a potential shutdown of the US Government.
James Seyffart, an intelligence analyst at Bloomberg, suggested that the US Securities and Exchange Commission (SEC) could potentially approve multiple Ethereum futures ETFs in the upcoming week.
Together with Eric Balchunas, another analyst, Seyffart stated that there’s a 90% likelihood of the Ethereum Futures ETFs being introduced in October 2023.
The analysts commented, “While the spot market remains uncertain, it’s highly probable (with 90% odds) that Ether futures ETFs will begin to be introduced in early October.”
Analysts forecasted that the Valkyrie Bitcoin futures ETF (BTF) is set to be the “first to incorporate Ethereum exposure on October 3, following a change in its strategy.” This pioneering step is likely to be succeeded by various direct Ether futures ETF contenders, said Balchunas, hinting at a competitive scenario by remarking, “It’s going to be quite the contest.”
Additionally, they projected that the debut ETF focused exclusively on Ethereum futures would be introduced by Volatility Shares. The launch is slated for October 12, following the anticipated approval of its application on October 11.
Nonetheless, the analysts emphasized that not every proposed Ethereum futures ETF will see the light of day. Valkyrie and Volatility Shares are just two among a total of 15 Ethereum ETF proposals that have been submitted by nine different entities.
The roster of companies submitting Ethereum ETF applications encompasses prominent names such as VanEck, ProShares, Grayscale, Bitwise, Direxion, and Roundhill.
Likely Before the US Govt. Shutdown
On September 28, Balchunas reported that the US SEC is eager to expedite the rollout of Ether futures ETFs, aiming to finalize it before any potential government halt.
He mentioned, “They [SEC] want it resolved before the shutdown,” highlighting the challenges that would arise once the shutdown begins, as a significant portion of the SEC’s workforce would become inaccessible.
Should Congress not approve the 12 necessary spending bills to sustain government agencies by midnight ET on October 1, a government shutdown will ensue. Given current circumstances, this outcome seems increasingly plausible.
Moreover, Balchunas conveyed that the regulatory body has requested several applicants to revise their filings by the end of this week. The intention behind this move is to ensure that the ETFs can be officially approved by the start of the upcoming week, allowing trading to commence by Tuesday.
