Following the hype that came after investment management giant BlackRock filed with the SEC to offer a Bitcoin ETF mid-June, Ethereum exchange-traded funds (ETFs) have recently seen similarly broad interest. Financial giants have in recent days rushed to capture this potential market space.
Ether ETFs are taking center stage, spearheaded by Volatility Shares, which officially filed for the Ether Strategy ETF on Jul 28, following the significant recognition it saw in June when it introduced the 2x Bitcoin Strategy ETF (debutant leveraged cryptocurrency ETF in the United States).
If approved by the securities regulator, the Volatility Shares Ether fund would be the first of its kind in the US, with the company’s offering potentially launching on Oct 12, the expected 75 days after the filing was done.
What followed Volatility Shares has been a flurry of applications, with another five asset managers filing within 24 hours, with the ProShares Short Ether Strategy ETF, VanEck Ethereum Strategy ETF, Grayscale Ethereum Futures ETF, Bitwise Ethereum Strategy ETF, and Roundhill Ether Strategy ETF all submitted by Aug 1.
ProShares said its Short Ether Strategy ETF would have an investment approach centered on daily contracts to profit from losses in the S&P CME Ether Futures index. On the other hand, VanEck’s investment strategy would revolve around Ether futures contracts, aiming to maintain exposure to Ether’s value equivalent to 100% of the fund’s total assets, while Grayscale’s fund would dominantly invest in front-month Ether futures, which are contracts boasting the shortest time to maturity.
Grayscale filed for a Bitcoin ETF too
Grayscale, which last Thursday, in a letter to the SEC, emphasized the need for equal treatment of all applicants (proposed simultaneous approval of all spot bitcoin ETF filings), accompanied its Ether ETF filing with a proposal to list the shares of Grayscale Global Bitcoin Composite ETF on New York Stock Exchange Arca.
Previously, the SEC rejected Grayscale’s attempt to convert its flagship Grayscale Bitcoin Trust (GBTC) into an ETF, and the firm sued the regulator for it.
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