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Ethereum Futures ETF May Come Before Bitcoin Spot ETF

According to James Seyffart, an ETF backed by regulated Ethereum futures contracts can be approved by the US Securities and Exchange Commission (SEC).

He also noted that a Bitcoin Spot ETF could be released by 2022, however SEC approval may also take longer due to concerns about regulation in the underlying Bitcoin market.

Although widely considered a superior type of ETF in the cryptocurrency community, the SEC has been reluctant to approve a Spot-based Bitcoin ETF. Instead, it opted for ETFs backed by regulated futures contracts, traded on the Chicago Mercantile Exchange (CME), which has no real Bitcoin.

Asked by Bloomberg TV for his opinion of the potential of an ETF Ethereum, Sam Bankman-Fried, co-founder and CEO of Crypto Exchange FTX, also said he wouldn’t be surprised to see such an ETF approved.

Meanwhile, news published on Sept. 29 that ETF provider Direxion was asked by the regulator to withdraw its proposal for a reverse Bitcoin ETF – dubbed the Direxion Bitcoin Strategy Bear ETF – that would offer short exposure to the Bitcoin price.

The company accepted and requested to the SEC to withdraw the request.

At 8:48 am Ethereum trades at $4,582 and is up 3.12% in one day and 14.56% in one week, while Bitcoin is almost unchanged in one day, at $63,187. The price rose 7.68% in one week.

Source: CryptoNews

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