Invesco i Galaxy Digital The aim is to introduce an Ethereum (ETH) spot exchange-traded fund (ETF) as more and more asset managers continue to explore digital asset products.
In a Friday post on X (formerly Twitter), Bloomberg ETF analyst James Seyffart revealed that the two asset managers have filed for a one-time Ether ETF, called the Invesco Galaxy Ethereum ETF.
According to the company’s S-1 registration statementthe Invesco Galaxy Ethereum ETF will “mirror the spot price performance of ether” by holding units of the cryptocurrency with a separate custodian, which has yet to be identified.
The filing detailed that Invesco is the sponsor, while Galaxy Digital is the “executive agent,” which will sell ETH to pay the Trust’s expenses.
Invesco and Galaxy join a growing list of investment managers seeking regulatory approval for a spot ETH ETF.
The SEC recently extended the deadline to make decisions on earlier filings by ARK 21Shares and VanEck to December 25-26.
The commission said it needed more time to consider the proposed rule change and related issues.
Ether ETF futures could arrive next week
While a one-time Ether ETF may take some time to materialize, futures-based Ether ETFs are expected to be available next week.
Investment firms have already started preparing to add ETH futures vehicles to their portfolios.
VanEck, for example, has announced its upcoming Ethereum Strategy ETF (tickered EFUT), which will be listed on the Chicago Board Options Exchange in the coming days.
Valkyrie, another company in the space, plans to offer exposure to Ether futures through its existing Bitcoin Strategy ETF, now rebranded as the Valkyrie Bitcoin and Ether Strategy ETF.
Bitwise also filed an updated prospectus for its Equal Weight Bitcoin and Ether Futures ETF on September 28, with expectations to go live next week.
In addition, Kelly ETFs has partnered with Hashdex to offer future Ether ETFs in the near future.
Like the domestic bitcoin ETF, the SEC has yet to approve the applications, citing concerns about market manipulation and investor vulnerability.
However, future ETH ETFs seem more likely to receive SEC approval.
Futures ETFs would invest directly in futures contracts traded on the Chicago Mercantile Exchange (CME) rather than the underlying smart contract asset.
The regulatory body considers futures ETFs a commodity that can be monitored by the CME, offering investors protection against price manipulation.
In fact, reports have suggested that the SEC may begin approving Ether futures ETFs as early as October, which has generated significant interest among asset managers eager to participate.
At the time of writing, Ether is trading positively around $1,600, boosted by the excitement surrounding the introduction of futures ETFs.