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 <p class="is-style-lead">The SEC is reportedly close to approving the first Ether <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a>-<a rel="noopener noreferrer nofollow" title="based" href="https://thebittimes.com/tag/based.html">based</a> ETFs, signaling a potential shift in stance on cryptocurrency regulations.</p> 
 <p>The U.S. Securities and Exchange Commission (SEC) is nearing approval of the first exchange-traded funds (ETFs) based on Ether futures, as sources told Bloomberg. </p> 
 <p>Numerous firms, including Volatility Shares, Bitwise, Roundhill, and ProShares, have submitted the required documentation, signaling readiness for ETF trading.</p> 
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 <p>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.</p> 
 <h2 class="wp-block-heading" id="tension-with-bitcoin-etf">Tension with Bitcoin ETF</h2> 
 <p>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.</p> 
 <p>Meanwhile, several entities, including BlackRock, have proposed introducing Bitcoin-themed ETFs.</p> 
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 <p>Crypto community member, Adam Cochran, points out an inconsistency in the SEC’s potential <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> of an Ether-<a rel="noopener noreferrer nofollow" title="based" href="https://thebittimes.com/tag/based.html">based</a> ETF. He suggests that the SEC can’t label Ethereum as an unregistered “crypto asset security” while approving an ETF <a rel="noopener noreferrer nofollow" title="based" href="https://thebittimes.com/tag/based.html">based</a> on it.</p> 
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   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <p lang="en" dir="ltr">2/5<br><br>You couldn't have a <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> ETF made out of an unregistered security.<br><br>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.</p>— Adam Cochran (adamscochran.eth) (@adamscochran) August 17, 2023 
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 <p>Cochran argues that for the ETF to exist, the SEC must recognize Ethereum as a commodity or currency, not a security.</p> 
 <p>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.</p> 
 <p>While it doesn’t definitively classify all cryptocurrencies, it showcases the SEC’s acceptance of a boundary needing legal interpretation.</p> 
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> US SEC accepts BlackRock’s spot Bitcoin ETF application 
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SEC nears approval of ether futures-based ETF

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