Invesco and Galaxy Pursue Spot Ether ETF app

As more and more asset managers continue to explore digital asset products, Invesco and Galaxy Digital Space aim to introduce an Ethereum (ETH) exchange-traded fund (ETF).

In a Friday post on X (formerly Twitter), Bloomberg ETF analyst James Seifert revealed that the two asset managers have filed for an ether ETF called the Invesco Galaxy Ethereum ETF.

According to the company's S-1 filing, the Invesco Galaxy Ethereum ETF “reflects the price performance of the Ether spot” by holding cryptocurrency units with another custodian.

The filing details that Invesco is the sponsor, while Galaxy Digital is the “executive agent” and will sell ETH to pay the trust's expenses.

Invesco and Galaxy join a growing list of investment managers seeking ETH ETF regulatory approval.

The SEC recently extended the deadline for a decision on previous applications from ARK 21Shares and VanEck to December 25-26.

The Commission stated that it needs more time to review the proposed rule change and related issues.

Ether futures ETFs may arrive next week.

While spot Ether ETFs may take some time to materialize, futures-based Ether ETFs are expected to be available as early as next week.

Investment companies are already preparing to add ETH future vehicles to their portfolios.

For example, VanEck announced its upcoming Ethereum Strategy ETF (EFUT), which will be listed on the Chicago Board Options Exchange in the coming days.

Another company in the space, Valkyrie, plans to offer exposure to ether futures through the Bitcoin Strategy ETF, now rebranded as the Valkyrie Bitcoin and Ether Strategy ETF.

Bitwise filed an updated prospectus for its equally weighted Bitcoin and Ether Futures ETF on September 28, which is expected to go live next week.

Additionally, Kelly ETFs has partnered with Hashdex to offer Ether futures ETFs in the near future.

As with spot bitcoin ETFs, the SEC has yet to approve applications, citing concerns about market manipulation and investor exposure.

However, ETH ETFs seem more likely to receive approval from the SEC in the future.

Futures ETFs invest directly in futures contracts traded on the Chicago Mercantile Exchange (CME) rather than the underlying smart contract asset.

The regulatory body treats futures ETFs as commodities that can be regulated by the CME, which protects investors from price manipulation.

In fact, reports suggest that the SEC may begin approving Ether futures ETFs as early as October, sparking interest among asset managers eager to participate.

At the time of writing, Ether is trading positively around $1,600, driven by enthusiasm for the launch of futures ETFs.