Ethereum Futures ETFs Begin Trading in the US
A number of Ethereum futures exchange-traded funds (ETFs) have made their debut on the Chicago Board Options Exchange (CBOE) in the United States. ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares collectively launched a total of nine ETFs. ProShares introduced three funds: the Ether Strategy Fund (EETH), the Bitcoin and Ether Strategy ETF (BETH), and the 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). VanEck’s Ethereum Strategy ETF (EFUT), Valkyrie’s Bitcoin and Ether Strategy ETF (BTF), Volshares’ Ether Strategy ETF (ETHU), and Brazilian fund manager Hashdex’s Ether Strategy ETF (EX) also began trading.
Slow Start for Ethereum Futures ETFs
Despite the excitement surrounding their launch, the nine funds experienced a slow start in terms of trading volume. By 11:25 am ET, they had only traded around $2 million in total. Bloomberg Intelligence analyst Eric Bulchunas described this volume as “meh” on Twitter. Among the funds, Valkyrie’s BTF led with approximately $787,000 worth of shares traded.
Comparison to Bitcoin Futures ETF
When compared to the first Bitcoin futures ETF that started trading in 2021 on the New York Stock Exchange, these Ethereum futures ETFs have a long way to go. The ProShares Bitcoin Strategy ETF traded nearly $1 billion in shares on its debut day. However, it is important to note that at that time, Bitcoin was trading at a much higher price than it is currently.
Spot ETFs vs. Futures ETFs
The newly launched Ethereum futures ETFs track the future price of Ethereum rather than the actual asset. This is different from a spot ETF, which allows investors to gain exposure to the cryptocurrency at its current price without holding the asset itself. The US Securities and Exchange Commission (SEC) is still considering several applications for spot crypto ETFs from major players in the financial industry.
Investor Options for Cryptocurrency Exposure
Until a spot crypto ETF is approved, investors who want exposure to cryptocurrencies can either trade futures contracts or purchase the digital assets directly. At the time of writing, Ethereum’s price stood at $1,690 with a 24-hour increase of 0.5% and a nearly 7% increase over the past seven days.
Hot Take: Ethereum Futures ETFs Make Their Debut in the US
The launch of several Ethereum futures exchange-traded funds (ETFs) on the Chicago Board Options Exchange (CBOE) marks an important milestone for cryptocurrency investing in the United States. These funds provide investors with an opportunity to bet on the future price of Ethereum without directly owning the asset. However, initial trading volumes have been relatively low compared to previous cryptocurrency ETF launches. While investors await the approval of spot crypto ETFs, they can still participate in the market through futures contracts or by purchasing cryptocurrencies directly. As the crypto industry continues to evolve, these new investment options offer greater accessibility and diversification for individuals looking to enter the digital asset space.
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