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Ether Futures ETFs Experience Modest Debut Trading Activity

Oct 5, 2023 at 06:48 am

The launch of futures-based ether exchange-traded funds (ETFs) saw relatively subdued trading activity, as noted by industry analysts.

A total of nine ETFs, providing exposure to ether futures, made their market debut on Monday. Among them, five exclusively focus on ether futures, while four incorporate a mix of bitcoin and ether futures in their holdings. Valkyrie’s Bitcoin Strategy ETF (BTF), slated for a rebrand, has been in operation for approximately two years as a bitcoin-only fund but is now expanding its strategy to encompass ether. The remaining funds are entirely new additions.

Eric Balchunas, an ETF analyst at Bloomberg, commented:

 "The Ether Futures ETFs experienced relatively restrained trading volume as a collective."

Among the notable ETFs on the first day was VanEck’s Ethereum Strategy ETF (EFUT), which witnessed the trading of just under 25,000 shares at an average price of roughly $17 per share, resulting in a total dollar volume of approximately $425,000.

By way of comparison, the ProShares Bitcoin Strategy ETF (BITO), launched in October 2021 amid a thriving crypto bull market, recorded over $1 billion in dollar volume on its inaugural day.

The crypto industry is keenly awaiting a verdict from the U.S. Securities and Exchange Commission (SEC) concerning several pending applications for both spot bitcoin and spot ether ETFs. In a recent development, Grayscale Investments signaled its interest in ether by filing for the conversion of its Grayscale Ethereum Trust (ETHE), which is valued at nearly $5 billion, into a spot ETF.

Read more: Coinbase Secures Payment License for Operations in Singapore

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