- In addition to spot Bitcoin ETFs, Ethereum Futures ETFs have been a topic of discussion among investors looking for a catalyst for the next bull run.
- Despite some gains in the crypto market in the past few days, these gains do not seem to have translated into inflows for Ethereum Futures ETFs.
- Ethereum futures ETFs provide indirect exposure to the ETH price through futures contracts, and a total of nine Ethereum futures ETFs were introduced to the market on Monday, October 2nd.
The launch of the first Ethereum Futures ETFs in the US didn’t make as big of a splash as expected, but the current data is surprisingly positive!
Ethereum ETFs Falling Short of Expectations
In addition to spot Bitcoin ETFs, Ethereum Futures ETFs have been a topic of discussion among investors looking for a catalyst for the next bull run. However, data suggests that these highly anticipated ETFs have disappointed in terms of trading volume.
Despite some gains in the crypto market in the past few days, these gains do not seem to have translated into inflows for Ethereum Futures ETFs, as investors appear hesitant to embrace these new Ethereum investment vehicles.
Ethereum futures ETFs provide indirect exposure to the ETH price through futures contracts, and a total of nine Ethereum futures ETFs were introduced to the market on Monday, October 2nd. These ETFs came after a year of waiting from financial firms such as ProShares, VanEck, Bitwise, and others.
It was expected that Ethereum’s ETFs, the second-largest cryptocurrency by market capitalization, would quickly take off and follow the early success of Bitcoin Futures ETFs. However, data indicates that trading volume for these new products has remained relatively low thus far.
According to a report by Bloomberg, these nine futures ETFs attracted $1.92 million within the first 24 hours after launch. Most of these transactions occurred in the ProShares Ether Strategy ETF, which accounted for over 45% of the trading volume.
According to data compiled by Bloomberg Intelligence, trading volume reached $15.6 million on Wednesday. Currently, inflows are led by the VanEck Ethereum Strategy ETF (EFUT) with $8.27 million and followed by the ProShares Ether Strategy ETF (EETH) with $5.96 million.
In contrast, Bitcoin Futures ETFs recorded $1 billion in trading volume within the first 24 hours after launch. However, it is important to note that market sentiment was not the same in these two periods. Bitcoin futures ETFs were launched at the peak of the 2021 crypto bull market, and since then, cryptocurrencies have experienced significant pullbacks.
The Future of Ethereum
While Ethereum futures ETFs provide a new way to increase exposure to Ethereum, the low trading volume indicates that they have not garnered significant overall interest. These ETFs were supposed to be a constant catalyst for Ethereum’s price, but this has not materialized.
Ethereum Spot ETFs are also being discussed, and ARK Invest submitted the first application in early September. If approved, spot ETFs are more likely to outperform futures ETFs.
Considering that Ethereum had risen above $1,700 following the launch of futures ETFs on October 2nd and has since lost all those gains, it is apparent that Ethereum is currently trading at $1,645 at the time of writing.
