The United States SEC has confirmed the receipt of another Exchange-Trust Fund application adding to the list of applications received. This time, the application is filed by VanEck for an ETF for Ethereum futures. The ETF is named Ethereum Strategy ETF. This application follows a BTC futures prospect strategy submitted to the SEC earlier.
VanEck is a reputable firm in the crypto market for the series of its BTC Exchange-Trust Fund applications. Now, it has applied for an ETH Exchange-Trust Fund, but people’s focus is on the BTC application. None of the applications, of course, has gotten approval so far, as the SEC has been delaying its decision many times. Yet, the firm keeps its plans going resolutely.
Should its first approved ETF be received by the market, then every shadow of doubt on the massive interest of investors about the investment vehicle would be erased. Those intending investors stay away from the market because of their love for a simpler and more accessible way of entering the crypto market.
As of now, there are exchange-trust funds in Europe and some other countries, meaning the possibility is not an abstract thing.
Of course, everything depends on the time the SEC approves the ETF. Yet the SEC Chair, Gary Gensler, has repeatedly emphasized his priority being investor protection. To this end, he has released several statements and has called Senator Elizabeth Warren for regulatory support.
However, market investors are eager for approval which could cause a tremendous change in the market. An EFT will create an easier route for investors to shift to the crypto market and will eventually boost the adoption.
When is an ETF Approval Likely Coming?
The sincere answer to the question is no one is certain. While everyone is anticipating SEC’s decision in a way before the end of the year, there is no certainty as to whether there will be an approval. There are several applications on the SEC table, yet the SEC kept reiterating market manipulations and investor protection.
Crypto supporters argued that the presence of an ETF would regulate the market than it is and will prevent the SEC’s concerns. Many believe it will create a safer way of investing in the market against the unregulated ways around.
The SEC, however, is working in partnership with other government bodies to create a broader market regulatory framework. This decision will imply the approval of ETFs, and investors hoping for approvals will have to keep waiting for this.
The bright side attached to this is that as soon as the regulatory framework is out, fund managers will have a better grasp of what the SEC is trying to achieve.
