The United States has launched its first Ether Futures ETFs

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Recently, the first Ethereum Futures ETFs were launched in the United States, allowing investors to speculate on Ether's price without directly holding it.

October 2, 2023

The initial volume of just over $1.7 million was more modest than the Bitcoin ETFs, but this launch is a significant step towards adopting cryptocurrencies in traditional financial markets.

The very first Ethereum Futures ETFs are on the U.S. market

Yesterday, Valkyrie received approval from the Securities and Exchange Commission (SEC) for its Ethereum Futures ETF. Today, nine ETFs in this family were launched. This marks a significant milestone for ETFs in the USA since these are the first Ethereum Futures ETFs authorized by the American regulator.

Investors have a variety of options when it comes to cryptocurrency ETFs. For example, Valkyrie offers a mix of exposure to Ethereum and Bitcoin, while VanEck, ProShares, Bitwise, Kelly, and VolShares offer ETFs solely focused on Ethereum.

ProShares CEO Michael L. Sapir says these ETFs will enable hesitant investors to invest in cryptocurrencies.

We believe that many investors interested in crypto-currencies but concerned about the risks involved in holding them, or who face the learning curve and complexity required to buy them directly, will be attracted to our crypto-linked ETFs.

ETFs are financial instruments that let investors speculate on the price movements of assets like Bitcoin or Ether without actually owning them. They are similar to conventional shares and are listed on stock exchanges for trading purposes. Essentially, investors can bet on whether the asset’s price rises or falls.

The launch had a subdued start.

ETF analyst Eric Balchunas notes that the launch of the Ethereum Futures ETFs was rather low-key, with a total volume of just over $1.7 million at 3:30 p.m.

Pretty meh volume for the Ether Futures ETFs as a group, a little under $2m, about normal for a new ETF but vs $BITO (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

It’s interesting to note that the ProShares Bitcoin Strategy ETF, traded on the NYSE Arca exchange under the ticker $BITO, saw $200 million in volume within just 15 minutes after its launch. However, it’s important to consider that it was launched during the bull run when the attraction of cryptocurrencies was at its peak.

Furthermore, despite Ether being the second most capitalized crypto on the market, Bitcoin remains the king of cryptocurrencies, with a greater aura.

According to Eric Balchunas’ estimates, the Ethereum Futures ETFs are expected to generate $6 to $7 million in volume on the first day of trading, a promising start compared to other ETFs launched in the US.

Myriam

Myriam's interest in crypto and blockchain started in 2015 due to her belief in their potential to revolutionize various sectors, particularly video games.