CRYPTO — A group of companies, including Valkyrie, Roundhill, Proshares, Grayscale, Vaneck, Volatility Shares, and Bitwise, have recently put in applications to launch ethereum (ETH)-based futures products as part of a consortium. These applications were submitted in recent weeks. Bloomberg’s Vildana Hajric and Allyson Versprille published a study on Thursday that highlights the Securities and Exchange Commission’s likely leaning towards not obstructing ETH-based futures. This information was provided by persons who are “familiar with the matter,” but would rather remain anonymous.
Even if these individuals have chosen to remain silent regarding the possibility of approvals, there is much buzzing speculation that the go-ahead might come in the month of October. Fans of Ethereum have responded positively to the impending change, which they believe would be beneficial for the cryptocurrency that is currently in second place. An enthusiast for Ethereum named Adam Cochran expressed the opinion that the effects of such news on ETH futures ETFs could be “bigger than first meets the eye.”
In his argument, Cochran stated, “The SEC cannot really both simultaneously argue that ETH is some new intrinsic ‘crypto asset security’ that is unregistered and approve an ETH Futures ETF.” Cochran was referring to the fact that the SEC would be contradicting itself if it did so. It is impossible to create a futures exchange-traded fund (ETF) 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 you must return to solely addressing the transactional content of it under the Howey standard.”ETH, however, did not have a completely positive Thursday. After Bitcoin’s sudden drop below the $26,000 barrier, the value of the cryptocurrency took a significant knock. During the past week, the value of ETH has decreased by 9% in comparison to the value of the US dollar.
On Friday, ETH was trading at $1,681 per token, marking a modest increase from the previous day’s low of $1,576 per token, which was reached on Thursday. At the moment, Ethereum’s footprint in the cryptocurrency space, which is now valued just north of $1 trillion, sits at 18.3%, which translates to a market cap that is getting close to $201 billion.