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Lukewarm Reception for Ethereum Futures ETFs

Lukewarm Reception for Ethereum Futures ETFs

Monday marked the introduction of nine exchange-traded funds (ETFs) based on Ethereum futures. Among these diversified offerings, five of the ETFs will focus exclusively on ether futures, while the remaining four will incorporate a mix of bitcoin and ether futures. Notably, Valkyrie’s Bitcoin Strategy ETF (BTF), which previously focused solely on bitcoin, is now considering including ether futures in its approach. Apart from the BTF, the other ETFs launched are new additions to the market.

Analysts Weigh in on Moderate Trading Volumes

Although the introduction of these ETFs generated some anticipation, their performance has been lackluster. As Bloomberg ETF analyst Eric Balchunas succinctly put it, trading volume for ether futures ETFs has been “pretty average.” For a more detailed analysis, VanEck’s Ethereum Strategy ETF (EFUT) saw a trading volume of nearly 25,000 shares, with an average price of about $17 each, bringing the total volume in dollars to approximately $425,000. To provide context, in comparison to the ProShares Bitcoin Strategy ETF (BITO) launched during the crypto bull market frenzy in October 2021, the latter had a first-day trading volume in dollars of over a billion.

The current uncertainty surrounding the cryptocurrency market is palpable. The crypto sector is currently on hold, awaiting decisions from the U.S. Securities and Exchange Commission (SEC) on several recent and past applications for spot bitcoin and ether ETFs. Adding to the excitement, Grayscale Investments recently revealed plans to convert its nearly $5 billion Grayscale Ethereum Trust (ETHE) into a spot ETF.

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