{"id":67264,"date":"2023-09-30T12:32:10","date_gmt":"2023-09-30T16:32:10","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/invesco-and-galaxy-pursue-spot-ether-etf-application\/"},"modified":"2023-09-30T12:32:13","modified_gmt":"2023-09-30T16:32:13","slug":"invesco-and-galaxy-pursue-spot-ether-etf-application","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=67264","title":{"rendered":"Invesco and Galaxy Pursue Spot Ether ETF Application"},"content":{"rendered":"
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Invesco<\/strong>\u00a0and\u00a0Galaxy Digital<\/strong>\u00a0aim to introduce a spot\u00a0Ethereum (ETH)\u00a0exchange-traded fund (ETF) as more and more asset managers continue to explore digital asset products.<\/p>\n

In a Friday post on X (formerly Twitter), Bloomberg ETF analyst\u00a0James Seyffart<\/strong>\u00a0revealed that the two asset managers have filed for a spot Ether ETF, dubbed Invesco Galaxy Ethereum ETF.\u00a0<\/p>\n

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Per the firm\u2019s S-1\u00a0registration statement, the Invesco Galaxy Ethereum ETF will \u201creflect the performance of the spot price of ether\u201d by holding units of the cryptocurrency with a separate custodian, who is yet to be identified.\u00a0<\/p>\n

The filing detailed that Invesco is the sponsor, while Galaxy Digital is the \u201cexecution agent,\u201d which will sell ETH to pay the Trust\u2019s expenses.<\/p>\n

Invesco and Galaxy join a growing list of investment managers seeking regulatory approval for a spot ETH ETF.<\/p>\n

The SEC recently extended the deadline for decisions on previous applications from ARK 21Shares and VanEck until December 25-26.<\/p>\n

The commission said that it required more time to consider the proposed rule change and the related issues.<\/p>\n

Future Ether ETFs Could Come Next Week<\/h2>\n

While a spot Ether ETF may take some time to materialize, futures-based Ether ETFs are expected to become available as early as next week.\u00a0<\/p>\n

Investment firms have already begun preparing to add ETH futures vehicles to their portfolios.\u00a0<\/p>\n

VanEck, for example, has\u00a0announced its upcoming\u00a0Ethereum Strategy ETF (tickered EFUT), which will be listed on the Chicago Board Options Exchange in the coming days.<\/p>\n

Valkyrie, another company in the space,\u00a0plans to offer\u00a0exposure to Ether futures through its existing Bitcoin Strategy ETF, now rebranded as the Valkyrie Bitcoin and Ether Strategy ETF.\u00a0<\/p>\n

Bitwise also submitted an updated prospectus for their equal-weight Bitcoin and Ether futures ETF on September 28, with expectations of going live next week.\u00a0<\/p>\n

Additionally, Kelly ETFs has partnered with Hashdex to deliver futures Ether ETFs in the near future.<\/p>\n

Like\u00a0spot bitcoin ETF, the SEC has yet to approve applications, citing concern over market manipulation and investors’ vulnerability.<\/p>\n

However, it appears that future ETH ETFs have a higher likelihood of receiving approval from the SEC.<\/p>\n

Futures ETFs\u00a0would directly invest in futures contracts traded on the Chicago Mercantile Exchange (CME) rather than in the underlying smart contract asset.\u00a0<\/p>\n

The regulatory body views futures ETFs as a commodity that can be monitored by the CME, giving investors protection against price manipulation.\u00a0\u00a0<\/p>\n

In fact, reports have suggested that the SEC may commence approval of Ether futures ETFs in early October, which has generated significant interest among asset managers eager to participate.<\/p>\n

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At the time of writing, Ether is trading positively at around $1,600, driven by the enthusiasm surrounding the introduction of futures ETFs.<\/p>\n

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