The launch of nine new Ethereum futures exchange-traded funds (ETFs) generated considerable excitement, but it seems that this enthusiasm did not translate into substantial investments.
On October 2nd, these nine ETF products, designed to mirror the performance of Ethereum’s native cryptocurrency, Ether (ETH), made their debut in the market. Among these funds, only five are dedicated solely to Ether futures, while the remaining four combine Bitcoin and ETH futures contracts in their portfolios.
Eric Balchunas, a senior ETF analyst at Bloomberg, shared his perspective on October 2nd, describing the day’s trading volume as rather unremarkable, stating, “It was a pretty lackluster day in terms of volume.”
On the initial trading day, all nine ETFs collectively recorded a trading volume of less than $2 million by midday EST.
The most popular among these futures ETFs was Valkyrie’s BTF, which focuses on a combination of Bitcoin and Ether, amassing a total trading volume of $882,000.
It’s important to note that BTF had previously operated solely as a Bitcoin futures ETF since October 2021 but adjusted its approach to include ETH.
The first-day trading volumes of the Ether ETFs were significantly lower when compared to the ProShares Bitcoin Strategy ETF (BITO), which made its debut in October 2021 during a booming crypto market, garnering over $1 billion in trading volume on its inaugural day.
Nevertheless, Balchunas pointed out that when compared to the typical launch of a traditional finance ETF, the observed trading volume was relatively substantial. However, he noted that investors generally exhibit a preference for spot ETF products over futures.
Balchunas clarified that the simultaneous launch of all these products was a deliberate move by the SEC to prevent any single fund from monopolizing the market.
In the midst of various U.S. companies vying for supremacy in the emerging Ether futures market, ETF provider Volatility Shares decided to abandon its plans to introduce a similar product, citing a lack of opportunity in the current landscape.