The first Ethereum Futures ETFs have been launched in the United States, allowing investors to bet on the price of Ether without having to hold it directly. However, their launch was more modest than that of Bitcoin ETFs, with an initial volume of just over $1.7 million. This launch nevertheless marks an important step in the adoption of cryptocurrencies in traditional financial markets.
The very first Ethereum Futures ETFs are on the US market
While Valkyrie obtained the green light from the Securities and Exchange Commission (SEC) for its Ethereum Futures ETF last Friday, A total of 9 ETFs from this family were launched today. This is a significant step for ETFs in the United States, since these are the very first Ethereum Futures ETFs authorized by the American regulator.
Some, like that of Valkyrie, are mixed ETFs, which allow exposure to both Ether and Bitcoin, which is also the case with ETFs offered by ProShares and Bitwise. Others are entirely dedicated to Ether, such as that of VanEck, one of ProShares, one of Bitwise, that of Kelly or that of VolShares.
According to Michael L. Sapir, the CEO of ProShares, these ETFs will constitute a path to democratization for some investors reluctant to have to keep their cryptocurrencies:
“We believe that many investors interested in cryptocurrencies but concerned about custody risks, or who face the learning curve and complexity of purchasing them directly, will be attracted to our cryptocurrency-related ETFs. »
Indeed, an ETF is a purely speculative tool: in the case of cryptocurrencies, it allows investors to bet on the rise or fall of an asset such as Bitcoin or Ether without having to actually hold any. Just like traditional stocks, ETFs are listed on stock exchanges to be traded on the market.
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A rather timid launch
As pointed out by Eric Balchunas, an analyst specializing in ETFs at Bloomberg, the launch of the Ethereum Futures ETFs we are talking about, however, saw rather limited enthusiasm. Indeed, at 3:30 p.m., these had a total volume of just over 1.7 million dollars :
Pretty meh volume for the Ether Futures ETFs as a group, a little under $2m, about normal for a new ETF but vs $LITTLE (which did $200m in first 15min) it is low. Tight race bt VanEck and ProShares in the single eth lane. pic.twitter.com/F9AHtrVcVf
— Eric Balchunas (@EricBalchunas) October 2, 2023
For comparison, the launch of the ProShares Bitcoin ETF (ProShares Bitcoin Strategy ETF), traded on the NYSE Arca exchange under the ticker $BITO, was accompanied by $200 million in volume generated in just fifteen minutes after its launch.
However, it should be noted that the latter was launched in full bull run, and therefore the attraction for cryptocurrencies was undeniably greater at that time. In addition, Bitcoin benefits from the status of king of cryptocurrencies, and its aura remains greater than that of Ether, although it is the second most capitalized crypto on the market.
According to Eric Balchunas’ estimates, ETFs are likely to exceed $6 or even $7 million in volume for the day. If we compare this figure to the different ETFs that can be launched in the United States, However, this represents a good start for the first Ethereum Futures ETFs.
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Source : The Block
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Passionate about the world of decentralized finance and the new developments brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prué
946 articles
2023-10-02 17:15:00
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