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Odds of Ethereum ETF Approval Surge: Analysts

Published 2023-08-04, 12:46 p/m
Odds of Ethereum ETF Approval Surge: Analysts
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U.Today - The odds of approval for Ethereum futures ETFs to 75%, according to a recent note by ETF analysts James Seyffart and Eric Balchunas. This is the same rate they attributed to Bitcoin futures ETFs in September 2021.

Meanwhile, the number of applications for Ethereum and Bitcoin futures ETFs has increased to twelve, thanks in part to recent submissions by Bitwise, a top firm in the field of index and beta cryptocurrency funds.

Cryptocurrency futures ETFs provide investors with exposure to cryptocurrency futures contracts rather than offering direct investment in the mercurial asset class.

The first bitcoin-linked exchange-traded fund (ETF) from ProShares, which tracks the bitcoin futures market made its debut in October 2021. It helped to revive the Bitcoin bull run after marking a significant regulatory milestone for the cryptocurrency industry.

Despite not allowing investors to buy crypto directly, this futures-based ETF could pave the way for the approval of spot ETFs in the future.

Is a Bitcoin spot ETF about to get approved?

It is worth mentioning that Seyffart and Balchunas the approval odds for a spot Bitcoin ETF upwards to 65% from 50% a few weeks ago.

The increased likelihood of Bitcoin ETF approval is influenced by SEC Chairman Gary Gensler's potentially more receptive stance and strategic moves by leading crypto investment firms like Grayscale and BlackRock (NYSE:BLK)

The first leveraged Bitcoin ETF

On a historic note, the SEC greenlighted the first leveraged Bitcoin ETF last month. This trailblazing product has attracted a tide of over $4 million in trading volume during the first day, with approximately half a million dollars worth of shares being scooped up within the first quarter of an hour.

This article was originally published on U.Today

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