In an unexpected turn of events, Ethereum (ETH) Futures Exchange Traded Funds (ETFs) are moving closer to their prime and may become available for trading as early as October 3, which could be a major catalyst for the ETH price.
Renowned Bloomberg ETF expert Erich Balchunas recently shared his insights indicating that the Securities and Exchange Commission (SEC) could speed up its approval process to avoid potential disruptions caused by a looming government shutdown.
SEC considers fast-tracking Ether ETFs
A government shutdown, which could go into effect if Congress and President Biden fail to agree on a budget or short-term continuing resolution by September 30, would entail the suspension of most federal government functions.
The consequences of a shutdown extend beyond its duration, as U.S. Department of Housing and Urban Development (HUD) services may experience disruptions and delays, impacting citizens both during the shutdown and as federal agencies strive to to regain momentum once it ends.
NBC reports that a government shutdown is increasingly likely if Congress does not take swift action. While Congress convened on Wednesday, progress in breaking the deadlock has been limited.
President Joe Biden expressed optimism, saying a shutdown is not inevitable and urging Republicans in the House of Representatives to fulfill their responsibilities by funding the government.
In light of these developments, Erich Balchunas believes that recent actions by the SEC indicate its intention to accelerate decision-making processes, as evidenced by the postponement of several spot Bitcoin ETFs weeks ahead of schedule.
To potentially avoid the impact of an impending shutdown, the SEC may look to accelerate the launch schedule for Ethereum ETFs. If this happens, ETF issuers will likely have to file their final prospectus this week to allow for an effective launch as early as October 2.
Supportive Balchunas’ perspective, Bloomberg Intelligence analyst James Seyffart agreed:
There’s nothing left to do yet but wait for filings indicating that Ethereum Futures ETFs are indeed being fast-tracked for next week’s launch. We expect many more filings from the SEC today as they continue to clear their desks as much as possible before the shutdown. Normality is out the window
These updates reinforce the idea that Ether futures ETFs are likely to receive immediate approval, in line with a recent Bloomberg report. report which gave a 90% chance of their October launch.
However, until the SEC officially announces its decision, the crypto community remains panicked and eagerly awaits the potential game-changing debut of Ether Futures ETFs on October 3.
ETH price shows resilience with upside momentum
Ethereum (ETH) has shown significant upward movement over the past week, marking a positive trend that has continued over the past 24 hours.
Over the past seven days, ETH has posted a gain of over 4%, while in the past 24 hours it has seen an increase of over 3%. As of the last update, ETH is currently trading at $1,662. This remarkable price increase comes at a crucial time, as the month-end closing is approaching.
A favorable outcome for Ethereum on these timeframes could potentially pave the way for bullish price action in October, especially with the expected approval of Ether Futures Exchange Traded Funds (ETFs).
While breaking the overall downtrend structure has proven to be a challenge for bullish investors, a close above $1,650 would position the cryptocurrency favorably for a bullish October. This is a crucial resistance level to overcome, and surpassing it would bring renewed optimism to the market.
Featured image from iStock, chart from TradingView.com