First Ethereum Futures ETF Is Set To Launch In The US
The crypto space is on the verge of another potentially historic moment with the first Ethereum Futures ETF in the US. Volatility Shares, a pioneer in the ETF space, has announced its intention to launch the Ether Strategy ETF (Ticker: ETHU) on October 12, 2023. If all goes as planned, this could mark the first Ether based exchange traded fund (ETF) in the United States.
Main Breakdowns:
- Volatility Shares plans to launch the Ether Strategy ETF on October 12, 2023.
- The ETF will be based on cash-settled Ethereum futures contracts trading on the CBOE.
- The fund does not directly invest in Ether, but instead invests in contracts referencing Ether.
- 13 other financial institutions have also sought SEC approval for their Ether Futures ETFs.
- The first Bitcoin futures ETF in the US was launched in October 2021.
Will Ether Echo BTC’s 2021 Surge?
Remarkably, the first Bitcoin futures ETF in the US was launched back on October 19, 2021. At that time, ProShares won the race for the first mover effect. And this has paid off. The total assets in Bitcoin futures ETFs accounts to $1.3 billion. Of that, nearly $1.1 billion is in the ProShares Bitcoin Strategy ETF (BITO). The second largest ETF is the ProShares Short Bitcoin Strategy ETF with $73 million. No other ETF has more than $50 million in assets under management.
Whether the ETH price will experience a similar euphoria as Bitcoin in 2021 remains to be seen. At least the environment is different. While BTC was in a full blown bull market, the crypto market is currently in a phase of stagnation, possibly before the start of a new bull market. However, without a doubt, the first Ethereum Futures ETF has the potential to be a catalyst for the ETH price.
At the time of writing, ETH was trading at $1,826, just above the key support of the 38.2% Fibonacci retracement level.
By
By
By
By
By
By