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The US Securities and Exchange Commission (SEC) has reportedly expedited the review and approval process of Exchange Traded Funds (ETFs) ahead of a potential government shutdown in the US. Bloomberg analysts Eric Balchunas and James Seyffart made a striking comment, stating that Valkyrie’s Ethereum (ETH) futures ETF is likely to receive approval from the SEC next week if everything goes as planned.
Valkyrie’s Ethereum Futures ETF Could Receive Approval Next Week
Bloomberg analysts Eric Balchunas and James Seyffart previously claimed that there was a 90% chance of Ethereum futures ETFs being launched in October, and they also predicted that Valkyrie’s Bitcoin futures ETF would be approved on October 3, 2023.
Analyst Balchunas reported that they received information suggesting that the SEC wants to expedite the review and approval process of Ethereum futures ETFs ahead of a potential government shutdown in the US. If the government shutdown occurs, the majority of SEC staff will not be working, and it is believed that the SEC wants to expedite the review and approval process before that.
Balchunas stated that the SEC wants to resolve this issue before the shutdown, saying, “They want to get rid of this problem before the shutdown. That’s why the applicants were asked to update their files by noon on September 29.”
During the hearing conducted by the US House Committee on Financial Services regarding the oversight of the SEC, Chairman Gary Gensler stated that in the event of a government shutdown in the US, the Commission would only be able to operate with a skeleton staff.
Other Ethereum Futures ETFs Awaiting Approval from the SEC
The launch of Volatility Shares Ethereum futures ETF, initially scheduled for October 11, is expected to be postponed due to the potential government shutdown. Additionally, Grayscale submitted another application to the SEC on September 19 to establish an Ethereum futures ETF.
A futures ETF is a derivative product that combines futures contracts with an Exchange Traded Fund (ETF), a financial instrument. This type of ETF is based on an index that tracks the estimated value of an asset (such as a stock index, commodity, currency, or cryptocurrency) for a future date and is typically traded on exchanges.