New ETH Futures ETFs Launch with Low Volume on First Day
Nine Ethereum futures exchange-traded funds (ETFs) were launched in the U.S. after receiving approval from the Securities and Exchange Commission (SEC). Five of these ETFs offer Ethereum-exclusive futures contracts, while the rest combine Bitcoin and Ethereum futures products.
First-day Volume Falls Short
Ethereum futures contracts allow investors to speculate on the future price of Ethereum. However, the first-day trading volume for these new ETFs was less than $2 million, which was lower than expected. The top-performing ETF was Valkyrie’s BTF with $882,000 worth of trading volume. Bloomberg ETF analyst Eric Balchunas described all nine products as “pretty average” and believed that spot ETFs would be more attractive to investors.
Grayscale Files for Spot ETF
Grayscale Investments has filed to convert its Grayscale Ethereum Trust (ETHE) to a spot Ethereum ETF in partnership with NYSE Arca Exchange. This move is part of Grayscale’s strategy to gain approval for a spot crypto ETF featuring Ethereum and Bitcoin. Grayscale’s Bitcoin Trust is also awaiting SEC approval to become a spot Bitcoin ETF. If approved, this development could expand cryptocurrency investment options for institutional and retail investors.
Hot Take: Approval of Spot Bitcoin ETF Expected Soon
Crypto industry insiders such as Bitwise CIO Matt Hougan and VanEck CEO Jan van Eck are optimistic about the SEC approving spot Bitcoin ETFs. They predict that a spot product will be available within the next year or early 2024. The involvement of major players like BlackRock has increased confidence in this outcome. However, there are still challenges due to the regulatory landscape in the United States.
By
By
By
By
By
By