25 April, 2024

Ethereum Future ETF Debut Falls Short of Expectations: Report

05 Oct, 2023

02 Dec, 2023

  • The launch of nine Ethereum Futures ETFs by industry leaders like ProShares, VanEck, and Bitwise fell short of expectations.
  • Ethereum’s value, which surged 4.5% to $1,734 on October 1, experienced a 4% drop, closing at $1,659 on launch day, and currently trades at $1,637.
  • ProShares Ether Strategy ETF led with $878,560 in trading volume, a notable contrast to ProShares Bitcoin Strategy ETF’s 2021 debut success.

After months of anticipation, the launch of nine Ethereum Futures ETFs by investment heavyweights like ProShares, VanEck, and Bitwise this week left speculators wanting. According to a recent report, the much-hyped launch on October 2 saw a lukewarm response, with only a meager $2 million inflows.

Ethereum’s value, which had surged by approximately 4.5% to $1,734 on October 1 in anticipation, took a hit and closed at $1,659 on launch day, marking a 4% decline. As of the latest update, Ethereum is trading at $1,637, reflecting a 0.53% decline over the past 24 hours.

Source: TradingView

According to the report, the six funds garnered a combined trading volume of $1.92 million on October 2, the ProShares Ether Strategy ETF led the pack with an impressive $878,560, accounting for 45.7% of the total volume. This starkly contrasts the ProShares Bitcoin Strategy ETF’s meteoric rise, which raked in a staggering $1 billion in just two days upon its 2021 debut. However, it’s crucial to note that the overall crypto market was bullish during that period.

In a notable comparison, Ethereum Futures managed only 0.2% of the trading volume seen during Bitcoin futures’ inaugural trading day, as a user on X (formerly known as Twitter) pointed out.

ETF analyst Eric Balchunas from Bloomberg offered a reassuring perspective, highlighting that crypto-related launches often follow a ‘buy the rumor, sell the news’ pattern. He pointed out that Bitcoin experienced a similar dip post the BITO surge and predicted a possible analogous scenario for Ethereum’s price.

While the SEC has thrown a curveball by postponing its verdict on spot Ethereum ETF approvals until at least the end of 2023. This affects both the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF, despite their submissions on September 6. If given the green light, these ETFs would break ground in providing direct ETH exposure in the US market.



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