If you were expecting a bang at the launch of Ether Futures ETFs, you may have been a little surprised. Last Monday marked the start of trading for a total of nine ETFs offering exposure to ether futures. While five of these funds focus strictly on ether futures, four of them feature a combination of bitcoin and ether futures.
Valkyrie, an old acquaintance in the ETF market, was not left out. Previously, they ran the Bitcoin Strategy ETF, but are now diversifying their horizons by including ether. Even though it is a recognized brand, the movement did not lead to an explosion in negotiations.
Bloomberg ETF analyst Eric Balchunas gave his verdict: “Pretty tepid volume for Ether Futures ETFs as a group.”
VanEck’s Ethereum Strategy ETF, one of the new players, saw around 25,000 shares trade. With an average price of $17 per share, total dollar volume only came to $425,000. Does it seem like a big number? Well, as a comparison, the ProShares Bitcoin Strategy ETF launched in October 2021 managed over $1 billion in dollar volume on its first day!
It’s no secret that the cryptocurrency market is eager for news, especially with so many expectations surrounding the US Securities and Exchange Commission’s (SEC) decision on the numerous applications for bitcoin and ether ETFs. Grayscale Investments, not wanting to be outdone, jumped in on Monday by requesting to convert its nearly $5 billion Grayscale Ethereum Trust into a spot ETF.
It is still too early to predict the path these Ether Futures ETFs will take. At the time of publication, the price of ETH was quoted at US$1,660.76, down 4% in the last 24 hours.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.