Ethereum Futures ETF Race Heats Up, But There’s a Problem for ETH…

• In the increasingly crowded landscape of ETF applications, Ethereum has emerged as a significant competitor alongside Bitcoin. In particular, Volatility Shares recently entered the Ethereum ETF field.
• ETF analyst Eric Balchunas, highlighted on Bloomberg, announced that Volatility Shares will launch an Ethereum futures ETF on October 12th.
• This institutional interest could significantly impact the trajectory of Ethereum. The introduction of Ethereum-focused ETFs could attract a wider range of investors.

Competition intensifies in the Ethereum ETF race: Volatility Shares joins the lineup of investment giants vying for an Ethereum ETF.

The Ethereum ETF Race Heats Up

All eyes are fixed on Bitcoin’s potential ETF approval by the SEC, while Ethereum positions itself to take advantage of this emerging investment path. In the increasingly crowded landscape of ETF applications, Ethereum has emerged as a significant competitor alongside Bitcoin. In particular, Volatility Shares recently entered the Ethereum ETF field.

ETF analyst Eric Balchunas, highlighted on Bloomberg, announced that Volatility Shares will launch an Ethereum futures ETF on October 12th. This strategic move was announced through an SEC filing on July 28th. The proposed ETF plans to invest in Cash-Settled Ethereum futures contracts, opting for an indirect route without directly investing in the cryptocurrency.

This may seem like a unique approach, but Volatility Shares previously made waves by launching the first 2x bitcoin-linked ETF (BITX) in July. This breakthrough solidified the company’s presence in the field of crypto-related ETFs.

However, Volatility Shares is not alone in the Ethereum ETF race. Other leading financial players such as Bitwise, VanEck, Roubhill, ProShares, and Grayscale have also submitted their own applications to the US SEC, entering the field.

This institutional interest could significantly impact the trajectory of Ethereum. The introduction of Ethereum-focused ETFs could attract a wider range of investors, potentially increasing demand and supporting its value.

Whales Are Moving Away

Despite this promising institutional interest, an interesting contradiction has emerged. Glassnode data shows a decrease in whale interest in Ethereum, with the number of addresses holding more than 10,000 ETH reaching its lowest level in two years at 1,095.

At the time of writing, Ethereum is trading at $1,794 and has shown relatively sideways movement over the past week. The Market Value to Realized Value (MVRV) ratio, an important indicator of address profitability, has been largely negatively sloped, indicating a decreased incentive for most holders to sell.

During the same period, Ethereum’s long/short ratio has increased, indicating an increase in long-term holders. This could mean a decrease in impulsive selling by short-term holders, thus potentially promoting greater price stability.