Lack of Significant Attraction for Ethereum Futures ETFs
The launch of several Ethereum Future ETFs this week has left many speculators disappointed. Nine ETFs were introduced by investment firms, but they only attracted around $2 million in flows upon their launch. This is in contrast to the anticipation of a price increase, as Ethereum’s price actually declined by 4% on October 2. The largest fund, ProShares Ether Strategy ETF, accounted for 45.7% of the total trading volume. However, it is important to note that this lackluster performance is not uncommon in the crypto market.
Destiny Awaits for Ethereum Spot ETFs
Similar to the launch of Bitcoin futures ETFs, there may be a decrease in Ethereum’s price following the initial surge in demand for futures ETFs. The SEC has also announced a delay in its approval decisions for Ethereum spot ETFs, with a decision not expected until the end of 2023. Two firms, ARK and VanEck, have submitted applications for Ethereum spot ETFs, which would provide direct exposure to ETH within the US if approved. Grayscale has also applied for an Ethereum spot ETF, seeking permission to convert its Ethereum Trust into an ETF.
Hot Take: Slow Start for Ethereum Futures ETFs Sparks Concern
The debut of Ethereum futures exchange-traded funds (ETFs) has fallen short of expectations, with low trading volumes and a decline in Ethereum’s price. While this may be disappointing for some investors, it is not uncommon for crypto-related launches to experience a “buy the rumor, sell the news” event. Additionally, the SEC’s delay in approving Ethereum spot ETFs adds uncertainty to the market. However, there is still hope for the future as more firms apply for spot ETFs that would provide direct exposure to ETH. Overall, the initial performance of Ethereum futures ETFs may not be indicative of their long-term success.
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