The Cancellation Chronicles
Volatility Shares had plans to break into the Ethereum futures ETF game, but as of October 2, those plans have been firmly placed on the back burner. Justin Young, co-founder and president of Volatility Shares, confirmed via email to Cointelegraph that the much-anticipated launch did not happen. “You are correct — we did not launch today. We didn’t see the opportunity at this point in time,” he noted, which sounds a bit like a polite financial shrug.
Future Hopes or Hopes for the Future?
Despite the current cancellation, Young hasn’t closed the door on future possibilities. When specifically asked whether an ETH futures ETF is still in the cards, he responded, “Of course,” adding that the roadmap for this financial vehicle remains a “TBD” situation. So, keep your popcorn ready, folks—it seems the plot thickens.
The Basics: What are Ether Futures ETFs?
If you’re wondering what the fuss is all about, let’s break it down: Ether futures ETFs are designed to track ETH futures contracts, allowing investors a chance to gain exposure to Ethereum’s price movements without the hassle of actually holding ETH. Picture it as a ride on a roller coaster without having to construct the entire ride yourself. Fun, right?
Why Now? Blame the Market Conditions
The market, much like a moody teenager, can be unpredictable. According to reports, fears surrounding a potential U.S. government shutdown prompted changes in the approval timeline for ETFs. This left the SEC scrambling and ultimately contributed to Volatility Shares halting their plans. Meanwhile, other players like Valkyrie, VanEck, ProShares, and Bitwise are already in the game, with trading activities underway for their ETH futures ETFs.
Comparing Launches: A Tale of Two ETFs
To put things into perspective, let’s talk numbers (as thrilling as that can be). The newly launched Ether Futures ETFs had a combined trading volume of nearly $2 million—not bad for fresh faces, though it’s a drop in the bucket compared to $BITO, which garnered a whopping $200 million in its first fifteen minutes. Talk about a heavyweight battle! With stiff competition between VanEck and ProShares in the ETH lane, it’s anyone’s game.
Government Shenanigans and ETF Consequences
Additionally, the looming threat of a government shutdown could have impacted ETF approvals, leaving regulators like the SEC and CFTC limping along on minimal staffing. But at the last moment, the Senate voted to avoid this scenario, passing a stopgap measure through November 17. Thanks to some quick legislative maneuvering, President Biden signed it into law immediately, allowing the financial circus to continue safely, for now.
