Ethereum ETF Possible This Year But Other Crypto Funds Still Have To Wait.

Ethereum ETF Possible This Year But Other Crypto Funds Still Have To Wait.

2021-10-25 | Eddy Morgan

Ethereum ETF Possible This Year But Other Crypto Funds Still Have To Wait.

If the first-ever bitcoin-futures exchange-traded fund's performance is any indicator, the launch of an ethereum-based one might be just as successful. Ethereum (ETH) bulls may not have to wait much longer, according to Trey Griggs, the US CEO of crypto trading firm GSR. "With the launch of the bitcoin-futures ETF, the heavy lifting has been done," he told Insider. "It might be possible this year." The listing of ethereum futures on the Chicago Mercantile Exchange in February 2021, according to Griggs, will considerably boost ethereum's reputation as an asset class, much as it did for bitcoin when it was listed in December 2017. A futures contract listing on the derivatives market, which is cash-settled and priced on a CME reference rate that aggregates data from several crypto exchanges, allows investors to obtain exposure to the coins without having to possess them outright. Futures are contracts that allow you to buy and sell an asset at a specified price and time. "Saying 'yes' to the multiple ethereum-based ETF applications is an incrementally minuscule lift," Griggs told Insider. "I don't think the SEC will take the same amount of time to approve an ETF for what is essentially the same product with a little different underlier." Meanwhile, after nearly a decade of attempts by the $6.7 trillion ETF industry to get a crypto-based fund approved, bitcoin futures ETFs are moving swiftly. Earlier last week, the ProShares Bitcoin Strategy ETF went live, becoming the first bitcoin-futures ETF to be listed in the United States and the second-most-traded fund launch of all time. The Valkyrie Bitcoin Strategy ETF went live on Friday, and a Van Eck ETF will be available next week. Griggs suggested that altcoin-futures ETFs could be possible in the future, but not in the near term. The question is whether these coins will be listed at the CME in the first place, he said. However, certain cryptocurrencies, such as Solana, Cardano, and Polkadot, use the same blockchain technology as ethereum, so Griggs believes the notion is feasible. "If the CME can come to terms with the fact that ethereum is a commodity under CFTC regulation, and as a commodity, it can have tradable futures contracts," he stated.

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