Akash Mahendra, Director of Haven1 Foundation, has commented on what the green light for Ethereum (ETH) futures from Valkyrie Funds means for the nascent crypto and blockchain industry.
Akash notes that while it’s a cause for celebration, it’s “a different picture for those still waiting for a spot Bitcoin ETF.”
Akash Mahendra, Director of Haven1 Foundation, says:
“For the first time ever, ETH futures are on the table on the back of the Securities and Exchange Commission (SEC) giving Valkyrie Funds the green light to start adding Ethereum futures to its existing Bitcoin futures ETF. The approval of an ETH futures ETF represents a monumental breakthrough for the world’s second-largest cryptocurrency. This landmark decision by the SEC not only showcases Ethereum’s rising prominence, but also signals a profound shift in the regulatory landscape.”
The approval was enough “to briefly propel Ethereum beyond $1,670, but prices quickly declined back to previous levels.”
The key differentiator between spot and futures ETFs is “that spot ETFs allow investors to purchase the underlying asset without the need to own it, while futures ETFs grant access to futures contracts, rather than direct ownership of the asset.”
With the green light for ETH futures ETFs, we now “enter a new era where Ethereum becomes increasingly mainstream.”
Yet as these get more popular, it’s likely that Ethereum “will see some further rules and regulations that would bring much needed clarity.”
While these futures ETFs may “not have an immediate impact as substantial as spot ETFs, it’s undeniable that it marks a crucial step forward.”
And the change is not limited to Ethereum alone – it “extends to the entire industry and serves as a clear indicator of growing institutional interest.”
This move, coupled with the upcoming bitcoin halvening “in April next year, could be one of many bullish signs for the market.”
While there’s much cause for celebration to round out the week, it’s a different picture for Bitcoin.
After months of delays, the market is “still patiently waiting for the SEC to approve spot Bitcoin ETFs from many institutions.”
“Though that patience is starting to thin. If a spot Bitcoin ETF is indeed approved, it would breathe life into the crypto market and aid the institutional adoption of crypto as an asset class.”