Ethereum Futures ETFs Debut in the US
Nine Ethereum futures ETFs launched in the US, experiencing modest demand compared to Bitcoin ETFs’ 2021 debut.
For the first time in the US, Ethereum futures exchange-traded funds (ETFs) began their trading journey today. Investment giants like ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares unveiled a collective of nine ETFs at the Chicago Board Options Exchange (CBOE). This move marks a significant stride in the expansion of cryptocurrency-related financial products in the US. Yet, it’s important to note the demand didn’t match the feverish excitement witnessed during the ProShares Bitcoin Strategy ETF launch last year.
ProShares, VanEck, and Others Launch New Funds
Taking a deeper dive into the specifics, ProShares introduced three notable funds: the Ether Strategy Fund (EETH), the Bitcoin and Ether Strategy ETF (BETH), and the Bitcoin and Ether Equal Strategy ETF (BETE). Bitwise wasn’t far behind, launching the Bitwise Ethereum Strategy ETF (AETH) and its Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP).
VanEck made its presence felt with its Ethereum Strategy ETF (EFUT). Valkyrie introduced the Bitcoin and Ether Strategy ETF (BTF), and Volshares made its mark with the Ether Strategy ETF (ETHU). Additionally, Brazilian fund giant Hashdex rolled out the Ether Strategy ETF (EX).
Despite the considerable buzz in the financial community, these nine ETFs experienced a relatively slow start. By 11:25 am ET, they had garnered just below $2 million in total trades. To put it in perspective, Valkyrie’s BTF led the pack, trading around $787,000 in shares by then.
Comparison with Bitcoin ETFs
Drawing a comparison to the past, Bitcoin’s first futures ETF had a groundbreaking debut on the New York Stock Exchange in 2021. The ProShares Bitcoin Strategy ETF astoundingly traded almost $1 billion worth of shares on its first day, nearly setting a new record. At its pinnacle during the bull market, Bitcoin’s value soared to over $66,000 per coin, showcasing a robust 60% jump from its current value.
The newly launched Ethereum futures ETFs, however, differ slightly in their investment strategy. These funds peg their investments to Ethereum’s future prices, not its current value. They offer an anticipation of the asset’s value at a future date, contrasting with a spot ETF, which mirrors the real-time price of the asset. The crypto community is eagerly waiting for the introduction of a spot crypto ETF, offering investors a chance to gain cryptocurrency exposure without actually owning the asset.
SEC and the Road Ahead
The U.S. Securities and Exchange Commission (SEC), the nation’s top regulatory body, is currently sifting through a slew of applications from prominent Wall Street firms, including heavyweights like BlackRock. These applications aim to secure a green light for the introduction of a spot ETF in the market. In the meantime, investors eager for a piece of the cryptocurrency pie either have to venture into futures contracts or make direct digital asset purchases.
On a concluding note, according to CoinGecko, Ethereum’s price was hovering around $1,690 at the article’s time, marking a modest 0.5% increase in the last 24 hours. Furthermore, Ethereum has enjoyed an almost 7% price surge over the previous week, showcasing its potential resilience and appeal in the crypto domain.