The number of Ethereum exchange-traded fund (ETF) applications is increasing by the day, with ProShares adding another. However, according to experts, the likelihood of any of them getting approved by the Securities and Exchange Commission is slim.
On Aug. 3, ProShares added to the recent wave of Ethereum ETF filings with its Bitcoin and Ether Equal Weight Strategy ETF.
11 Ethereum ETFs Filed
This is ProShares’ fourth ETF with Ethereum futures, according to Bloomberg Intelligence analyst James Seyffart. Furthermore, it brings the tally of Ethereum exchange-traded product applications to 11, he said on Aug. 4.
Bitwise filed an application for Bitcoin and Ether Equal Weight Strategy ETF on Aug. 3. Meanwhile, ProShares and Direxion both filed for additional ETFs on Aug. 3.
On Aug. 4, ETF Store President Nate Geraci said he expects demand for ETH futures ETFs to be fairly limited overall before adding:
“BTC futures ETFs have < $1.5bil AUM & much of that came in first few days post-launch. Combined BTC + ETH futures ETFs are probably the best path to succeed for now IMO.”
“Ultimately, investors want real deal spot ETFs,” he concluded.
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Analyst Commentary and ETH Price Outlook
Commenting on this week’s wave of applications, Seyffart said,
“My base case is that these are withdrawn by the end of next week.” He added that these firms “probably had these on the shelf ready to go and just needed to re-submit them.”
The firms may think that the cost of submitting a filing off the shelf and withdrawing is minuscule, he said. Especially when compared to the cost of being days or weeks behind a competitor on a first-of-its-kind launch.
“I’d say 75% chance these are withdrawn on gut instinct,” he speculated.
Commenting on Bloomberg earlier this week, litigation analyst Elliott Stein said:
“If the SEC loses its case against Grayscale, as we expect, the path of least resistance would be a wave of simultaneous approvals for all spot Bitcoin ETF applicants – including Grayscale and the other eight active filings.”
Ethereum prices have weakened this week, dropping 2% since Monday. The asset was trading down marginally on the day at $1,832 at the time of writing.
ETH has lost 5.5% over the past month but remains range bound, where it has been since mid-March.
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