Underwhelming Debut: Ethereum Futures ETFs Fall Short of Hype
The recent introduction of exchange-traded funds (ETFs) tied to Ether futures marked an important development on Monday, offering investors novel avenues to engage with the cryptocurrency holding the second-largest market capitalization.
Nevertheless, the launch did not witness substantial trading activity.
These six fresh Ethereum futures ETFs, managed by ProShares, VanEck, and Bitwise, collectively saw a trading volume of $1.9 million on their inaugural day, according to ASXN, a cryptocurrency research organization. The ProShares Ether Strategy ETF (EETH), the largest among these new offerings, traded shares valued at over $870,000.
In contrast, the initial trading volume falls significantly short of the $1.02 billion traded during the first day of the ProShares Bitcoin Strategy ETF (BITO) launch in 2021. Nonetheless, industry ETF experts argue that the subdued response aligns with the norms for new fund debuts.
Nice look at the underwhelming volume for the ether futures ETFs yesterday (altho volume was avg for normal ETF launch but admittedly it feels underwhelming bc of spot excitement) via @Vlajournaliste with some comments from your's truly.. https://t.co/do9KLO5X9Z via @WSJ
— Eric Balchunas (@EricBalchunas) October 3, 2023
There is anticipation of more Ether futures ETFs entering the market soon. Valkyrie Investments, for instance, recently delayed its plans to convert its Bitcoin futures fund into an Ether-focused one, citing regulatory hurdles.
Other entities such as Kelly ETFs, Invesco, and various firms also have Ether futures ETFs in the registration pipeline.
Despite the underwhelming launch, introducing these ETFs is a significant achievement for the crypto industry, providing investors with an expanded array of options for cryptocurrency investment.