Ethereum Futures ETFs Make Underwhelming Debut in the Market
The highly anticipated launch of Ethereum futures exchange-traded funds (ETFs) on October 2 did not translate into significant investment dollars, unlike their Bitcoin counterparts. Out of the nine ETF products introduced, five exclusively hold Ether futures contracts, while four combine both Bitcoin and ETH futures. However, the trading volume on the first day was relatively subdued, amounting to just under $2 million. In comparison, the ProShares Bitcoin Strategy ETF (BITO) saw a staggering $1 billion in trading volume on its debut day in October 2021.
Valkyrie’s Blended ETF Stands Out
Among the new Ether ETFs, Valkyrie’s bitcoin-ether blend ETF stood out with nearly $800,000 in trading volume on its first day. Previously a Bitcoin-only futures ETF, Valkyrie adjusted its strategy to include exposure to Ethereum and gained significant attention from investors.
Tepid Debut for Ether ETFs
While the trading volume of Ether ETFs was considered substantial compared to traditional finance ETF launches, investors generally prefer spot ETF products over those based on futures contracts. Spot ETFs provide direct ownership of the underlying asset and are more appealing to investors seeking long-term exposure without complexities.
Hot Take: Ethereum Futures ETFs Struggle to Attract Investor Interest
The launch of nine new Ethereum futures ETFs generated modest trading activity on their first day, falling far short of the meteoric rise witnessed by Bitcoin ETFs like BITO during their debut. The underwhelming response suggests that the investment community may still favor traditional spot ETFs over those tied to cryptocurrency futures.
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