Ethereum Future ETFs Start Trading in US for First Time – For the first time, a number of Ethereum futures exchange-traded funds (ETFs) have commenced trading in the United States. On Monday morning, investment firms ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares introduced a combined total of nine ETFs on the Chicago Board Options Exchange (CBOE).
ProShares introduced a trio of funds, namely the Ether Strategy Fund (EETH), the Bitcoin and Ether Strategy ETF (BETH), and the Bitcoin and Ether Equal Strategy ETF (BETE). At the same time, Bitwise launched its Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP).
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VanEck initiated trading for its Ethereum Strategy ETF (EFUT) on Monday, coinciding with the debut of Valkyrie’s Bitcoin and Ether Strategy ETF (BTF), and Volshares introduced its Ether Strategy ETF (ETHU). Additionally, Brazilian fund manager Hashdex introduced its Ether Strategy ETF (EX).
However, the nine funds experienced a sluggish beginning. As of 11:25 am ET, their combined trading volume amounted to just under $2 million, a level that Bloomberg Intelligence analyst Eric Bulchunas, in a Twitter post, described as underwhelming.
Notably, Valkyrie’s BTF led the pack, with approximately $787,000 worth of shares changing hands by that point. The journey ahead for these funds is quite extensive when compared to the debut of the first Bitcoin futures ETF on the New York Stock Exchange in 2021.
The ProShares Bitcoin Strategy ETF, during its initial trading, saw nearly $1 billion in shares traded in a single day, nearly setting records in the process. During that period, at the peak of the bull market, Bitcoin was commanding a price of over $66,000 per coin—almost 60% higher than its current value.
The current crop of crypto funds, which track the future price of Ethereum instead of the underlying asset, has arrived as investors anticipate the introduction of a spot crypto ETF. A spot ETF allows investors to gain exposure to the cryptocurrency in question at its current market price without holding the actual asset, while investing in a futures ETF essentially constitutes a wager on the asset’s future price.
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The U.S. Securities and Exchange Commission (SEC), the foremost regulatory authority in the United States, is currently evaluating numerous applications from prominent Wall Street entities, including BlackRock, with regard to the issuance of a decision on this matter. Until a decision is reached, investors desiring exposure to cryptocurrencies will need to engage in trading futures contracts or acquire the digital asset directly.