The cryptocurrency market continuously attracts the attention of investors, both individual and institutional. The industry’s eyes are on cryptocurrency-based ETFs, especially after the U.S. Securities and Exchange Commission (SEC) announced the need for more time to assess the Bitcoin fund proposals.
While the cryptocurrency market continues to grow in strength, efforts to introduce cryptocurrency ETFs remain in the foreground. Significant entities, such as BlackRock and Fidelity, are eagerly awaiting the SEC’s decision on their proposed Bitcoin-based funds.
Uncertainty, however, dominates the sector, especially after a recent announcement by the regulator that it needs more time to review seven such proposals. Despite the immense interest in Bitcoin-based ETFs, the current stance of the SEC introduces many doubts among experts. Predictions vary, and other cryptocurrency-based investment products might hit the market much sooner.
An example could be the ETFs based on Ether futures contracts, which might debut as early as next month. Such news comes precisely two years after the premiere of the first ETFs based on Bitcoin futures contracts. Moreover, according to certain reports, the SEC seems open to considering such funds, and insiders suggest that the regulator is unlikely to pose obstacles to such products.
In the context of Ether, it’s worth mentioning Volatility Shares’ actions. This prominent cryptocurrency firm applied for a fund based on Ether futures contracts at the end of July. Bitwise, Grayscale, and ProShares are also heading in a similar direction. Furthermore, Volatility Shares announced the debut of its Ether Strategy ETF (ETHU) on October 12, 2023, certainly heating up the atmosphere around cryptocurrency ETFs.
The situation is slightly different for 21Shares and Ark Invest, eagerly awaiting the SEC’s decision on their proposed ETFs based on Bitcoin and Ether. Both companies also engage in advisory services regarding cryptocurrency-related products, which are likely to debut without significant regulatory issues.
Looking broadly at regulations concerning cryptocurrencies, although the SEC might potentially approve Bitcoin-based ETFs later this year, there are speculations that the agency will appeal a recent court decision about Grayscale. In such a case, any approvals are likely to be delayed until 2024, giving the SEC more time to thoroughly consider all applications.
In such a dynamically changing atmosphere, the cryptocurrency community remains in a state of uncertain anticipation, closely monitoring every move of the regulator that might shape the future of investment products in the world of cryptocurrencies.
