SEC may approve the first Ethereum 2x leveraged futures ETF, and several applicant companies say they are in "positive" dialogue with regulators

According to BlockBeats, Fox Business reporter Eleanor Terrett exclusively reported that several companies that have applied to the U.S. Securities and Exchange Commission (SEC) to issue Ethereum leveraged futures ETFs said they have had "active conversations" with SEC staff about the application, and one of the companies said that based on the communication so far, they are "optimistic" that the SEC will approve these funds.

If the SEC does not reject it, Volatility Shares' 2x leveraged Ethereum Strategy ETF (code: ETHU) will be the first to take effect on June 4. The company launched the Bitcoin Leveraged Futures ETF (BITX) in June last year, six months before the SEC approved the spot Bitcoin ETF. According to Forbes, the fund has become the largest holder of Bitcoin futures contracts on the Chicago Mercantile Exchange (CME).

If the SEC allows an Ethereum leveraged futures ETF to be listed, it will add another interesting color to the whole "SEC has determined that Ethereum is a security" rumor, because they will essentially double down and allow both Ethereum futures and leveraged Ethereum futures products to exist.