ETH Futures ETF Issuers Stay Positive on SEC Approval Despite Feud

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As a researcher with experience in the cryptocurrency market, I find the ongoing developments surrounding the potential approval of Ethereum Futures ETFs by the SEC intriguing. While it’s important to note that nothing is set in stone, the optimistic outlook expressed by some issuers who have reportedly had positive dialogues with SEC staff is noteworthy.

The possibility of an ETF for Ethereum futures being approved by the SEC remains, as reported by Fox Business journalist Eleanor Terrett. Some applicants in the process of submitting proposals for leveraged Ethereum futures ETFs have mentioned having constructive conversations with SEC staff. This hopeful outlook emerges amid ongoing debates about whether Ethereum is categorized as a security by the SEC.

ETH Futures ETF Approval in June?

According to Eleanor Terrett’s report, one representative from the issuer of ETH Futures ETFs expressed confidence that the Securities and Exchange Commission (SEC) would give their approval based on their previous communications. If no objections are raised by the SEC, the Volatility Shares 2x Ether Strategy ETF ($ETHU) is scheduled to debut on June 4.

Volatility Shares launched the Bitcoin futures ETF (BITX) in June the previous year, preceding the SEC’s approval of Bitcoin spot ETFs by half a year. As reported by Forbes, BITX has since emerged as the CME’s largest proprietor of Bitcoin futures contracts.

SEC’s Misleading Stance on Ethereum

According to Gary Gensler, the SEC chairman, Ethereum (ETH) functioned as an unregistered security during the previous year. This stance diverges from the SEC’s earlier views regarding Ethereum being classified as a commodity. (Fox Business reported this on April 29.)

As a researcher examining the latest developments in the ongoing story, I’m intrigued by a recent court filing that could potentially shed new light on the Ethereum classification issue. This filing may contain valuable information regarding the timing of the Securities and Exchange Commission’s (SEC) alleged designation of Ethereum as a security.

Consensys, after being given a warning by the SEC in the form of a Wells Notice, responded by filing a lawsuit in a Texas court. In their complaint, they argued that the SEC had changed its stance on Ether’s classification as a security. The company accused the Commission of attempting to dominate the Bitcoin market. A 2018 SEC report declared that Ethereum’s second-largest cryptocurrency, Ether, was not classified as a security. This declaration raised concerns about potential bias given the SEC’s previous involvement in the Ripple controversy.

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2024-05-01 03:47