The Big Launch: What’s the Deal?
On October 2, the crypto world saw the rollout of nine new Ethereum futures exchange-traded funds (ETFs). What was meant to be a celebratory occasion instead felt like a lukewarm cup of coffee—exciting at first, but ultimately leaving you wanting more. These ETFs are designed to mirror the value of Ethereum’s currency, Ether (ETH). However, only five of them focus exclusively on Ether futures, while the remaining four dabble with a mix of Bitcoin (BTC) and ETH futures.
Trading Day Blues
Day one didn’t exactly break the internet, with all nine ETFs collectively pulling in less than $2 million in trading volume by midday. Eric Balchunas, a senior analyst at Bloomberg, summed it up perfectly with a
“Pretty meh day of volume.”
Out of all the offerings, Valkyrie’s Bitcoin Strategy ETF led the pack, raking in $882,000. Notably, it had already been in the market as a Bitcoin-only ETF since October 2021, so introducing ETH was like adding a cherry on top of an existing cake.
A Distant Memory of Debut Glory
In stark contrast to this year’s Ethereum ETFs, think back to October 2021’s debut of the ProShares Bitcoin Strategy ETF, which kicked off with over $1 billion in trading volume. It was less of a debut and more of a dramatic entrance. Remember that high-energy crypto market? Makes you wonder if the party’s gone a little too quiet lately.
The SEC’s Master Plan
So what’s up with all these ETFs launching on the same day? The SEC played puppeteer, hoping to prevent any one fund from stealing the spotlight. Balchunas mused that while the trading volume might seem trivial in the ETF realm, it’s still a decent amount considering how investors usually favor spot ETFs over their futures counterparts.
Missed Opportunities and Future Prospects
While U.S. firms are in a fierce race for dominance in this fresh Ether futures market, Volatility Shares decided to pull the plug on its own listing plans. They reportedly “didn’t see an opportunity” in the current environment. Sounds like they realized they’d be bringing a butter knife to a gunfight—probably not the best to take on such competition!
