Bloomberg’s ETF analyst believes that ProShares’ multiple Ether-based ETF applications within a short period may indicate a favorable stance from the SEC.
The race for cryptocurrency exchange-traded funds (ETFs) is heating up, as ProShares, a leading global asset manager, recently filed applications with the US Securities and Exchange Commission (SEC) to launch exchange-traded funds (ETFs) focusing on bitcoin (BTC) and ether (ETH). The application, submitted on August 3, includes a proposal for the Bitcoin and Ether Equal Weight ETF, designed to measure “the performance of holding long positions in the nearest maturing monthly bitcoin and ether futures contracts.”
Bitwise filed its application on the same date in a parallel move, seeking approval for an ETF that equally weights exposure to Bitcoin and Ether. The fund aims to track “the performance of holding long positions in the nearest maturing monthly bitcoin and ether futures contracts.”
ProShares Becomes the 11th Company to File for Ethereum ETF
It is important to note that ProShares and Bitwise have taken different steps in expanding their crypto-related funds. ProShares has already been active in the digital asset space, having previously filed applications for other cryptocurrency-related ETFs, including one focused on the metaverse.
On the other hand, Bitwise joins the fray with a series of ETF applications for Ethereum. Notably, the SEC has received a total of 11 Ether-related ETF filings in less than a week, all of which are centered on futures ETFs. The wave of applications began with Volatility Shares filing for the Ether Strategy ETF on July 28. ProShares is now adding its own Ether ETF proposals to the mix, making the company the 11th to join the race. The fund manager filed for a total of four Ether-related ETFs within a few days, including a dual Bitcoin and Ether futures strategy ETF, a short Ether strategy ETF and an Ether strategy ETF.
UPDATE: Another one…. 11 ETFs Filed… Proshares filed for a 4th ETF with Ethereum futures. This one is an equal weight #Bitcoin & #Ethereum ETF just like Bitwise's filing which dropped an hour ago. https://t.co/vB05Wvt33e pic.twitter.com/u3I3LzznGZ
— James Seyffart (@JSeyff) August 3, 2023
While Bitcoin futures ETFs have been available since October 2021, the SEC has yet to approve any ETF that tracks Ether futures contracts, making these applications a focal point of market attention.
A Favorable Stance from the SEC
Market analysts and experts hold varying opinions on the potential outcomes of these filings. Bloomberg’s ETF analyst, James Seyffart, believes that ProShares’ multiple Ether-based ETF applications within a short period may indicate a favorable stance from the SEC. However, he also acknowledged the regulatory challenges related to approving ETFs based on Ether futures contracts, which the SEC has been cautious about in the past.
In contrast, Lark Davis, a well-known crypto influencer, expressed skepticism about the prospects of spot crypto ETFs. He is critical of futures-based ETFs, citing concerns about potential market manipulation and calling for a focus on spot ETF approvals.
The recent influx of ETF applications comes amid speculation about the SEC’s stance toward digital assets. Retail investors have shown increasing interest in ETFs, and market observers believe that the approval of ETFs could pave the way for the mainstream adoption of cryptocurrencies.
As the SEC reviews these applications, the cryptocurrency community eagerly awaits the regulatory decisions that could shape the future of digital asset investments and broaden the accessibility of virtual assets to retail investors.