Day one trading volume across all nine products was a lackluster affair, with less than $2 million in total. The much-anticipated launch of nine new Ethereum futures exchange-traded funds (ETFs) failed to attract significant investment dollars. It seems the rush of excitement surrounding these products did not translate into substantial trading activity.
Of the nine ETFs, only five exclusively held Ether futures, while the remaining four tracked a combination of Bitcoin and ETH futures contracts. Senior Bloomberg ETF analyst Eric Balchunas expressed his disappointment, describing the trading volume as “pretty meh.” He emphasized that these ETFs hold futures contracts, which are derivatives, and investors generally prefer physical assets.
The most popular of the ETF products was Valkyrie’s BTF, which tracks a mix of Bitcoin and Ether. It managed to accumulate a total trading volume of $882,000. However, it’s worth noting that BTF had already been trading as a Bitcoin-only futures ETF since October 2021 and only recently adjusted its strategy to include ETH.
The trading volume of the Ether ETFs paled in comparison to the ProShares Bitcoin Strategy ETF (BITO), which debuted in October 2021 during a booming crypto market. BITO witnessed over $1 billion in trading volume on its first day.
Despite the relatively low trading volume, Balchunas pointed out that compared to traditional finance ETF launches, the volume was actually quite significant. However, he acknowledged that investors generally prefer spot ETF products over futures.
Balchunas also mentioned that the SEC scheduled all the ETF launches on the same day to prevent any single fund from dominating the market.
In the midst of various US firms vying for supremacy in the nascent Ether futures market, Volatility Shares decided to cancel its plans to list a similar product. The company stated that it didn’t see an opportunity at the current time.
In summary:
– Day one trading volume for the new Ethereum futures ETFs fell short, totaling less than $2 million.
– Valkyrie’s BTF, which tracks a combination of Bitcoin and Ether, was the most popular, with $882,000 in trading volume.
– The Ether ETFs’ trading volume was significantly lower than that of the ProShares Bitcoin Strategy ETF, which saw over $1 billion on its first day.
– Despite the underwhelming volume, it was still considered substantial compared to traditional finance ETF launches.
– The SEC scheduled all the ETF launches on the same day to prevent market domination by any single fund.
– Volatility Shares canceled its plans to list a similar product, citing a lack of opportunity at the current time.
