Underwhelming Debut: Ethereum Futures ETFs See Modest Trading
The launch of nine new Ethereum futures exchange-traded funds (ETFs) was met with much anticipation, but the initial investment response appears to have fallen short of the hype.
These ETFs, introduced on 2 October, aim to mirror the performance of Ethereum's native cryptocurrency, Ether, through futures contracts.
While five of these ETFs exclusively hold Ether futures, the remaining four track a combination of Bitcoin and ETH futures contracts.
Eric Balchunas, a senior Bloomberg ETF analyst, commented on the first day of trading, describing it as "pretty meh" in terms of volume.
On the debut day, the combined trading volume of all nine ETFs amounted to less than $2 million.
Among them, Valkyrie's BTF, which now includes both Bitcoin and Ether, recorded the highest volume at $882,000.
It is worth mentioning that BTF was previously a Bitcoin-only futures ETF https://www.coinlive.com/news-detail/180369 before incorporating Ether into its strategy.
In contrast, the Ether ETFs' first-day trading volume paled in comparison to the ProShares Bitcoin Strategy ETF (BITO), which, upon its launch in October 2021, saw over $1 billion in trading activity.
Eric noted that, while the volume was significant compared to traditional finance ETF launches, investors generally prefer spot ETF products over futures.
He also explained that the SEC coordinated the launch of all these products on the same day to prevent any one fund from gaining undue market dominance.