The Surge in Ether (ETH) Price Following US SEC’s Move on Ether Futures ETFs
With the recent news that Ether Futures will be allowed by the United States Securities and Exchange Commission (SEC) to base the first exchange-traded funds (ETFs), the price of Ether (ETH) experienced an approximate 11% rise to $1,700. This development was reported by Bloomberg on August 17, citing anonymous sources knowledgeable about this.
Companies Preparing to Launch Ether Futures ETFs
As per the Bloomberg report, around 12 companies, which include ProShares, Volatility Shares, Bitwise, and Roundhill, seem not to face any blockages from the regulator on their recent applications to launch Ether (ETH) futures ETFs. This information is in accordance with the following tweet by the Bankless Twitter account:
Breaking
The SEC is expected to green light an ETH futures ETF
The beginning of something potentially massive here… pic.twitter.com/x9KtOpCqei
— Bankless (@BanklessHQ) August 17, 2023
SEC’s ETA on ETF Applications Approval
It remains to be seen which ETF applications would get the SEC’s approval. However, there is an indication from officials that many of these applications could see approval as early as October.
Eric Balchunas’s View on SEC’s Stand on Ether futures ETFs
ETF analyst Eric Balchunas believes that the SEC’s move to approve Ether futures ETFs is not surprising. He asserts that this decision showcases how the regulator’s perspective on different products, such as a spot Bitcoin ETF can vary with time.
This not surprising to us, we had said they would approve Ether Futures early on in race. Nice to be validated. Now what does it mean for spot? Hard to say beyond it shows that their views/policy/tolerance can change. https://t.co/JXCxNUpj2U
— Eric Balchunas (@EricBalchunas) August 17, 2023
Influx of Ether futures ETF Applications at SEC
The SEC has seen a flood of applications for Ether futures ETFs, receiving more than 12 filings for these products since late July.
Effect on ETH’s Price
The price of ETH rallied and saw an 11% increase to $1,717, a mere 20 minutes after a market dip that happened two hours earlier. The price performance chart of Ether is presented below:
The price of Ether jumped 11% following the news that the SEC would approve Ether futures ETFs. Source: TradingView
