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The SEC is reportedly close to approving the first Ether futures-based ETFs, signaling a potential shift in stance on cryptocurrency regulations. 
The U.S. Securities and Exchange Commission (SEC) is nearing approval of the first exchange-traded funds (ETFs) based on Ether futures, as sources <a href="https://www.bloomberg.com/news/articles/2023-08-17/sec-said-to-be-poised-to-allow-us-debut-of-ether-futures-etfs-eth" data-type="link" data-id="https://www.bloomberg.com/news/articles/2023-08-17/sec-said-to-be-poised-to-allow-us-debut-of-ether-futures-etfs-eth" target="_blank" rel="noopener noreferrer nofollow">told</a> Bloomberg. 
Numerous firms, including Volatility Shares, Bitwise, Roundhill, and ProShares, have submitted the required documentation, signaling readiness for ETF trading. 
 You might also like: <a href="https://crypto.news/valkyrie-submits-application-for-ether-futures-etf/" rel="noopener noreferrer nofollow"> Valkyrie submits application for Ether futures ETF&nbsp; </a> 
Though the details of approved investments are still unknown, insiders hint at potential approvals coming as early as October. Ether, Ethereum’s native token and the world’s second-largest digital asset after Bitcoin, is central to these discussions. 
<h2 class="wp-block-heading" id="tension-with-bitcoin-etf">Tension with Bitcoin ETF</h2> 
The SEC’s hesitancy towards Bitcoin-linked ETFs persists. A notable case includes Grayscale Investments’ attempt to convert its Bitcoin trust into an ETF, a matter set for a US federal appellate court hearing. The SEC flags several risks for cryptocurrency investors, such as Bitcoin’s price volatility and concerns regarding price manipulation and liquidity. 
Meanwhile, several entities, including BlackRock, have proposed introducing Bitcoin-themed ETFs. 
 You might also like: <a href="https://crypto.news/learn/what-is-bitcoin-etf-and-which-companies-applied-for-it-in-the-us/" rel="noopener noreferrer nofollow"> What is Bitcoin ETF and which companies applied for it in the US? </a> 
Crypto community member, Adam Cochran, points out an inconsistency in the SEC’s potential approval of an Ether-based ETF. He suggests that the SEC can’t label Ethereum as an unregistered “crypto asset security” while approving an ETF based on it. 
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 2/5 You couldn't have a futures ETF made out of an unregistered security. You must accept the state that it is a commodity or a currency for this to be the case, and revert to only attacking the transactional matter of it under Howey.— Adam Cochran (adamscochran.eth) (@adamscochran) <a href="https://twitter.com/adamscochran/status/1692322454461350006?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 17, 2023</a> 
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Cochran argues that for the ETF to exist, the SEC must recognize Ethereum as a commodity or currency, not a security. 
Such recognition would mark a significant win, reaffirming Ethereum’s non-security status. Cochran also believes this could impact legal cases like the XRP appeal by highlighting a distinction between the asset and its sales. 
While it doesn’t definitively classify all cryptocurrencies, it showcases the SEC’s acceptance of a boundary needing legal interpretation. 
 Read more: <a href="https://crypto.news/us-sec-accepts-blackrocks-spot-bitcoin-etf-application/" rel="noopener noreferrer nofollow"> US SEC accepts BlackRock’s spot Bitcoin ETF application </a>

SEC nears approval of ether futures-based ETF

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