History in the Making: Volatility Shares to Launch First Ether ETF on October 12

Volatility Shares is preparing to make history with the launch of the Ether Strategy ETF (Ticker: ETHU) on October 12, 2023. Pending approval from the US Securities and Exchange Commission (SEC), ETHU will become the first ETF in the United States to offer Ether-linked exposure to institutional clients.

Bloomberg’s senior ETF strategist, Eric Balchunas, broke the news via Twitter, drawing attention to the groundbreaking development.

Understanding the Impact

CIO of Volatility Shares, Stuart Barton, further underlined the ambitious agenda:

“Volatility Shares successfully launched the first 2x Bitcoin-linked ETF (BITX) in July and believes that ETHU is the next logical step before turning our forces to spot markets.”

Considering the company’s success with its Bitcoin-linked ETF, the Ether Strategy ETF’s anticipated launch date may seem aggressive, but it is not without precedent.

Also Read: Europe’s First Spot Bitcoin ETF Launches in Amsterdam

Race for Ether Futures ETFs

Volatility Shares is not alone in the pursuit of the Ether Futures ETF market. Other financial juggernauts, such as Bitwise, VanEck, Roubhill, ProShares, and Grayscale, are vying for a piece of the pie. They, too, have filed applications with the US SEC.

The rising demand for Ethereum Futures ETFs in the market has even led Bitwise to revise its application for Bitcoin Strategy Optimum Roll ETF into a Bitcoin and Ether Equal Weight Strategy ETF.

Why Is the SEC Changing Its Tune?

Amid these developments, reports of the SEC’s supposed “readiness” to accept an Ether futures ETF are making waves. Some speculate this change may stem back to Volatility Shares’ surprising listing for a leveraged Bitcoin futures ETF in late June. This is the reason behind the mass application for Ether ETF. 

Bloomberg analysts currently estimate the probability of an Ethereum ETF approval at 75%. In contrast, Balchunas holds a strong belief in a 95% chance of approval for Ether futures.

The approval and successful launch of ETHU would not only be a victory for Volatility Shares but a landmark moment for the industry, potentially signalling a broader shift in how digital assets are approached by institutional investors.

Do you think the SEC will approve the ETHU ETF?