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The saga between the U.S. Securities and Exchange Commission (SEC) and cryptocurrency entities has taken an unexpected turn. Reports suggest that Ethereum Futures Exchange-Traded Funds (ETFs) are racing to the market faster than anticipated. Why the sudden urgency, you ask? The upcoming government shutdown might be the answer.
SEC’s Whirlwind Crypto Journey
The relationship between the SEC and cryptocurrency companies has been, for lack of a better term, rocky. Ever since the crypto frenzy of 2017, with its unending ICOs, the SEC earned itself the reputation of being the stern watchdog.
The narrative has been that instead of collaborating with the cryptocurrency industry to carve a defined path, the SEC chose to flex its regulatory muscle, often leaving cryptocurrency outfits in the dark. The plight of crypto exchanges and spot bitcoin ETF applications, either denied or entangled in red tape, became symbolic of this standoff.
A Glimpse of Change?
Interestingly, there seems to be a silver lining on the horizon. Eric Balchunas, a seasoned ETF analyst with Bloomberg, recently hinted at a new development. While there’s still a cloud of uncertainty hanging over spot ETFs, Ethereum Futures ETFs are expected to roll out soon, spearheaded by Valkyrie. The next in line would likely be a series of Ethereum-dedicated ETFs. The goal? Clear the decks before the shutdown.
UPDATE: Hearing the SEC wants to accelerate the launch of Ether futures ETFs (bc they want it off their plate bf shutdown) so they've asked the filers to update their docs by Fri pm (no small task to jam into 48hrs, esp for indie issuers), so they can go eff Mon and trade Tue. https://t.co/gKyQFK12aM
— Eric Balchunas (@EricBalchunas) September 28, 2023
Adding to the intrigue, Grayscale recently successfully transitioned its Grayscale Bitcoin Trust to a listed spot bitcoin ETF, despite previous pushback from the SEC. The SEC’s resistance, citing concerns over potential fraudulent practices, was sidestepped when the House Financial Services Committee highlighted that a spot bitcoin ETF wasn’t different from the crypto futures ETFs the SEC had given the nod to.
Gary Gensler, the man at the helm of the SEC, is all set for a rendezvous with the House Financial Services Committee later today. With the Committee already penning its appeal for the swift approval of pending ETF applications, Gensler is bound to face some intense grilling.