Last Updated on 2 weeks by Ameer Hamza
After a long-drawn battle between the U.S SEC and tech organizations bidding for the approval of Ether Futures ETFs, this digital asset’s futures ETFs have finally launched, and the first week in October welcomed about nine new Ether Futures ETFs into the crypto market.
How do these ETH Futures ETFs work?
Like Bitcoin, Ethereum blockchain’s native token, Ether, now has its futures ETFs. Futures ETFs are a type of investment in future contracts that allows investors to speculate on the future trends of Ether without holding the asset itself. The ether futures ETFs enable investors to gain exposure to the crypto market without direct access to Ether.
Several providers introduced their new futures ETFs, with most offering a mix of both ether and bitcoin futures ETFs. VanEck, ProShares, Bitwise, Valkyrie, Kelly, and VolShares introduce and provide access to the six new funds.
These providers offer future products in unique bundles to attract investors and place them in their preferred positions. For instance, VanEck’s EFUT is structured to provide long-term investors with a more efficient tax experience. In addition, Bitwise and ProShares announced that their ETFs will include ether and bitcoin exposure. All of ProShares’ ETFs are listed on the New York Stock Exchange.
Market performance of these futures ETFs so far
Following the launch of these products, their acceptance into the market was met with low spirits, unlike what was anticipated. While Bitcoin futures ETFs launched in October 2021 and garnered almost $1 billion within one day of trading, Ether futures ETFs have been tame in market trading.
The launch of the futures ETFs and their trading volume was termed a “disappointing start.” When added up, the trading price of the futures ETFs was a little below $2 million on its first day. Valkyrie led the futures ETFs group trading at almost $800,000, followed by VanEck with over $300,000. The Ether ETF by ProShares came next, followed by its Ether and bitcoin merged token.
The price of ETH itself is down about 60%, currently valued at only over $1,500, since the launch of the futures ETFs.
Crypto experts are enthusiastic about the launch of the ETH futures ETFs product. Their introduction into the crypto market is believed to allow both spot and futures ETFs to exist side by side. This way, investors can access more opportunities and explore more options as they fit their investment needs.
Regardless of the tame entrance of ether futures ETFs, we can anticipate the introduction and growth of similar products. For instance, after launching three future ETFs this month, ProShares is set to start trading its Short Ether Strategy ETF (SETH). As new products emerge in the crypto world, the excitement surrounding them will be high. Thus, investors should tread carefully as they explore these emerging products.