What Happened with the Ether Futures ETF?
Volatility Shares, a financial firm making waves in the ETF world, decided to hit the brakes on their much-anticipated Ether (ETH) futures ETF. On October 2, the company announced the cancellation, pointing to volatile market conditions that didn’t bode well for their plans. Co-founder and president, Justin Young, confirmed via email that they did not launch as expected, saying, “You are correct — we did not launch today. We didn’t see the opportunity at this point in time.” Talk about timing!
Future Plans? Maybe, Just Not Yet
Even though the ETH futures ETF is off the table for now, Young hinted that the dream isn’t dead. When asked if the company intends to revisit their plans, he responded with a hopeful “Of course,” though he kept fans on their toes by stating, “plans are TBD.” This leaves us all wondering: will Ether futures ETFs ever see the light of day?
Understanding Ether Futures ETFs
For those scratching their heads about what an Ether futures ETF even is, let’s break it down. These ETFs are designed to follow the prices of ETH futures contracts—essentially bets on what the price of ETH will be at a future point in time. This allows investors to dive into the world of ETH trading without needing to hold the actual cryptocurrency. Think of it as trading without the pesky wallet management!
The SEC Shuffle and The Race Against Time
Just weeks before the cancellation, the U.S. Securities and Exchange Commission (SEC) was anticipating the approval of the first ETH futures ETF on October 12. However, concerns surrounding a potential government shutdown caused a shuffling of timelines, leading to a flurry of anxiety in the Ether market. Young’s cancellations haven’t dampened the spirits of others, as firms like Valkyrie, VanEck, ProShares, and Bitwise have already jumped onto the ETH futures ETF bandwagon. But who knew the new kids on the block would be up against such enthusiastic competitors?
Market Response: Not Quite a Blockbuster
The volume for these new Ether futures ETFs has been, dare we say, a little underwhelming. The group saw trades totaling just under $2 million, which is certainly standard for a new ETF but pales in comparison to the first 15 minutes of trading for ProShares’ BITO ETF, which hit a whopping $200 million. It’s like comparing a field trip to the moon with a Saturday night in front of the TV!
Government Shuts Its Doors—Except Not
In a bizarre turn of events, the U.S. government dodged a shutdown crisis by passing a stopgap funding measure that will keep services running through November 17. The Senate made a decisive move with an 88-9 vote, and President Biden eagerly signed it into law. What does that mean for the financial regulators? As noted by Turner Wright from Cointelegraph, it seems they will still be operating on a tight budget with limited staffing. Time so shine, or maybe not!
