ETH Futures ETFs Make a Splash, but Not the Kind We Hoped For

The launch of nine new Ether (ETH) futures exchange-traded funds (ETFs) was met with a resounding *meh* from analysts at K33 Research. In their October 3 report, they suggested it’s time to take a step back from ETH and reinvest in Bitcoin (BTC). The initial trading volumes for these Ether ETFs were shocking; they only accounted for a mere 0.2% of what the ProShares Bitcoin Strategy ETF (BITO) raked in on day one of its trading back in October 2021. Talk about a buzzkill!

Barometer for Demand: Ether vs. Bitcoin

Analysts Anders Helseth and Vetle Lunde commented that while no one was expecting the ETH futures ETFs to break records—considering they launched amid a more subdued market—the reality was quite disappointing. The first-day numbers for ETH were “strongly” underwhelming, and well below expectations. If your idea of success is channeling your inner market guru, this latest data won’t be your golden ticket.

A Lesson in Institutional Appetite

Lunde analyzed the situation with a bit of caution—his prior advice to increase ETH allocation has hit a speed bump. As it turns out, the ETH launch isn’t creating a huge push for crypto investments from traditional players. “Increased institutional access will only create buying pressure if significant unsatiated demand exists,” stated Lunde. “This is not the case for ETH at the moment.” Ouch! That’s a hard truth.

The Crypto Landscape: An Inescapable Sideways Slide

In the section titled “More chop ahead,” Lunde spelled out that the overall crypto market appears to be wandering in a dazed zigzag. Without pressing catalysts for short-term price spikes, it’s likely that the market will keep drifting sideways for a while. However, he remains optimistic about Bitcoin’s prospects, awaiting the potential approval of a spot ETF in the near future and eyeing the halving event anticipated for mid-April.

The Macro Picture: When the Fed Sneezes, Crypto Catches a Cold

Ben Laidler from eToro seems to echo a similar sentiment, albeit with a touch more doom-and-gloom. In a communication with Cointelegraph, he pointed to ongoing macro trends influencing the market, emphasizing that factors like federal interest rates and rising oil prices could serve as a chilly blanket over crypto assets, potentially causing further price drops for heavy hitters like Bitcoin. “At the late stage of the rate hike cycle we’re in, the market is looking for further good news to push on,” said Laidler. “But with oil prices rising again, this could have a cooling effect on sentiment.” So, grab your winter jacket, folks!