When introducing a Bitcoin (BTC) Spot Exchange Traded Funds (ETF) is being delayed, it could simply be that its biggest competitor is getting ETF approval soon. The futures Ethereum ETFs (ETH) appear in the US Securities and Exchange Commission (SEC) should be approved, at least according to journalist Ally Versprille Isfrom media company Bloomberg.
Ethereum exchange funds on the way?
It affects a number of companies that have submitted applications, including crypto exchange Bitwise and financial institutions VanEck, Valkyrie and Volatility Shares. Despite 10 previous rejections of similar proposals, the firms hope that recent interest in bogus Bitcoin ETFs, such as Blackrock’s well-publicized submission, has created a favorable environment for Ethereum ETFs.
The Ethereum ETF differs from the currently pending Bitcoin ETF applications in terms of futures. Futures are contracts that allow two parties to buy or sell a specific amount of an asset, in this case ETH, at a predetermined price. They offer the possibility of both lung (bullish) as short (bearish) go. When it comes to going short, the approval of such an ETF is certainly not necessarily good news. Previously, bitcoin futures ETFs were also allowed.
Accordingly ETF expert James Seyffart, Valkyrie, is expected to be the first to expect SEC approval in early October. This fund will contain both BTC and ETH.
What is the difference between a spot ETF and a futures ETF?
A spot ETF and a futures ETF are both investment vehicles that give investors exposure to a specific asset, but in different ways. A spot ETF buys and holds the actual underlying asset, such as gold or a specific asset cryptocurrency. When someone buys a spot ETF for Bitcoin, it means that the ETF actually owns BTC. Unlike futures ETFs, which do not require a direct purchase of the asset, a spot ETF creates an immediate surge in demand for that asset, putting upward pressure on its price.