The US SEC made its stance clear regarding spot market pegged crypto ETFs after it rejected the VanEck spot Bitcoin ETF proposal last week. Although the rejection didn’t come out of the blue as SEC chief Gary Gensler had made it clear earlier that the regulatory body thinks the crypto market is not mature enough to handle a spot ETF. Now it seems SEC would rather approve an Ether Futures ETF than a spot BTC one.
Bloomberg Intelligence analyst James Seyffart has predicted that the crypto market could see its first Ethereum Futures ETF by the first quarter of next year. He said,
“Most market participants agree that a spot Bitcoin ETF would be superior to existing futures ETFs, yet SEC approval of the former may be delayed until late 2022 or beyond. Though a spot Bitcoin ETF is possible in 2022, SEC approval may take longer due to concerns about regulation in the underlying Bitcoin market,”
The US SEC created history last month when it approved two Bitcoin Futures ETFs nearly four years after the first Bitcoin ETF proposal was made. However, it continues to maintain a similar stance on the spot ETF claiming the market is prone to manipulation. This has got many in crypto riled up given crypto market has breached the $3 trillion mark this year and its institutional demand has also peaked to new highs.
Ethereum Futures vs Bitcoin Spot ETF
After the SEC chief’s comment on the Futures ETF market, several firms either withdrew their spot ETF proposal or filed a futures one. There are several firms that have filed for an Ether Futures ETF as well including MoneyTree and Galaxy Digital. Sam Bankman-Fried, co-founder and chief executive officer of crypto exchange FTX believes the approval for Eth Futures ETF won’t come as a surprise to many. He explained,
“Ethereum maybe, I don’t know, but it might be upon speculation that there might be an Ethereum futures-based ETF as well — that would not be a surprising development,”
Crypto proponents believe SEC knows a spot market is more viable and less prone to manipulation compared to the future one, and that’s why they don’t want to lose that control. The Bitcoin Futures ETF launch was a great success too.