Withdrawal of Proposals for an Ether Futures ETF A Positive Sign for the Bitcoin Futures ETF

According to Bloomberg Intelligence's ETF expert James Seyffart, the sudden withdrawal of applications for ether futures exchange-traded funds (ETF) by VanEck and ProShares last week speaks favorably for the US Securities and Exchange Commission quickly approving a bitcoin futures ETF.

  • In a letter on Tuesday, Seyffart noted that VanEck and ProShares both withdrew their applications only two days after submitting them, implying that the SEC contacted the issuers and suggested that an ether futures fund was unlikely to be authorized.
  • However, according to Seyffart, the fact that both businesses' bitcoin futures ETF registrations, as well as those of many other firms, are still active is a positive for their chances. He anticipates at least one bitcoin futures exchange-traded fund (ETF) to debut in the United States in the fourth quarter, perhaps as early as October.
  • Many of these bitcoin futures ETFs were suggested after SEC Chairman Gary Gensler recently said that bitcoin ETFs that exclusively trade bitcoin futures contracts would be more favorable.
  • If bitcoin futures ETFs are able to function effectively, and open interest and volume in ether contracts continue to grow, Seyffart thinks ether futures ETFs will be authorized by the SEC soon.

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