Ethereum Futures ETFs Make Their Debut in the US: A Slow Start with Potential

In a significant development for the cryptocurrency market, several Ethereum futures exchange-traded funds (ETFs) have commenced trading in the United States. Investment firms including ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares collectively launched nine ETFs on the Chicago Board Options Exchange (CBOE) on Monday.

These ETFs represent a strategic move by investment firms to provide investors with exposure to the future price movements of Ethereum. Among the notable ETFs introduced are ProShares’ Ether Strategy Fund (EETH), Bitcoin and Ether Strategy ETF (BETH), and Bitcoin and Ether Equal Strategy ETF (BETE). Bitwise introduced its Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), while VanEck unveiled its Ethereum Strategy ETF (EFUT). Valkyrie and Volshares also joined the race with their Bitcoin and Ether Strategy ETF (BTF) and Ether Strategy ETF (ETHU), respectively. Notably, Brazilian fund manager Hashdex rolled out its Ether Strategy ETF (EX).

Ethereum Futures ETFs Make Their Debut in the US: A Slow Start with Potential

However, these ETFs saw a modest start in terms of trading volume, with Bloomberg Intelligence analyst Eric Bulchunas describing the initial trading activity as “meh” on Twitter. By 11:25 am ET, the total trading volume for these funds was just under $2 million. Valkyrie’s BTF led the pack with around $787,000 worth of shares changing hands during that period.

While the debut of Ethereum futures ETFs marks a significant milestone, they have a long way to go to match the debut of the first Bitcoin futures ETF on the New York Stock Exchange in 2021. The ProShares Bitcoin Strategy ETF, in particular, saw nearly $1 billion in shares traded on its debut day during the peak of the Bitcoin bull market when the cryptocurrency was trading at over $66,000 per coin.

It’s important to note that these newly introduced ETFs track the future price of Ethereum rather than the underlying asset itself. Investing in a futures ETF effectively means betting on the future price of the asset, while a spot ETF would allow investors to gain exposure to the cryptocurrency at its current market price.

The crypto community continues to await the approval of a spot crypto ETF by the U.S. Securities and Exchange Commission (SEC). Several prominent players in the financial industry, including BlackRock, have submitted applications for such ETFs. Until a decision is reached, investors seeking cryptocurrency exposure will have the option to trade futures contracts or purchase the digital asset directly.

At the time of writing, Ethereum was trading at $1,690 with a 24-hour gain of 0.5% and a nearly 7% increase over the past seven days.

Check out The other crypto-related news Articles:

Powell Addresses Economic Concerns, Bitcoin Reacts with Sub-$28,000 Drop

ProShares and Bitwise Join VanEck as Ethereum Futures ETFs Begin Trading

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