The U.S. Securities and Exchange Commission (SEC) is reportedly ready to approve an Ethereum (ETH) futures exchange-traded fund (ETF), almost two years after the green light for Bitcoin (BTC).
According to a new report from Bloomberg, the regulatory body appears poised to approve the first-ever futures ETF based on the second-largest digital asset by market cap.
Anonymous sources familiar with the matter say the SEC will not block ETH-based futures products, but notes that they are not sure which exact bids will be approved. Companies that have applied for them include Volatility Shares, Bitwise, Roundhill and ProShares, according to the report.
The SEC first approved ProShares’ bid to create an ETF based on BTC futures in October 2021, the first of its kind at the time. However, the regulatory body has so far rejected any bid to create a Bitcoin ETF on the spot market, citing concerns about liquidity, safety and volatility.
In September 2021, Chairman Gary Gensler said he would consider approving a BTC futures ETF, noting at the time that they were filed in a way that would provide “significant consumer protection”.
Earlier this month, the SEC opened up the possible creation of ARK Invest’s spot market Bitcoin ETF to the public by asking investors to submit their views in writing on a proposed rule change that would allow the Chicago Board Options Exchange (CBOE) to list and shares of ARK’s BTC ETF to trade.
Ethereum is trading at $1,689 at the time of writing, down 6.1% in the past 24 hours.
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