Ethereum futures ETFs attract just $2 million in trading

Ethereum futures ETFs attract just $2 million in trading

On Monday, six Ethereum futures ETFs were launched to a slow start. The funds attracted just under $2 million in trading volume.

Investors haven't come to grips with Ethereum futures ETFs.

The launch of six Ethereum futures ETFs in the US on Monday was 'disappointing,' said K33 Research's vetle Lund.

The shallow flows depict a hollow market and a deficient demand for Ethereum exposure, he said.

Futures ETFs are based on the future value of an asset whereas spot ETFs are based on the current value of an asset.

No crypto spot ETFs have been approved by the U.S. regulatory authorities, but several major financial firms have applied to launch them, including BlackRock and Fidelity.

The most popular Ethereum-only funds were ProShares' EETH and VanEck's EFUT, both of which earned between $850,000 and $500,000 in trading volume.

Nearly 50 percent of EFUT's trading volumes occurred during its first minute of trading, Lund said.

ProShares, in contrast to Bitcoin futures ETFs, could lead the way when it comes to Ethereum, which is a similar concept to Bitcoin futures ETFs.

While Monday's launch mirrored Bitcoin's 2021 debut in that sense, it was completely different when it comes to volume.

The Bitcoin futures ETFs clocked up more than $1 billion in trading volume in just two days - ProShares' BITO did $200 million in the first 15 minutes.

ProShares's BITO, which broke records, started at the height of the bull market in 2021 - a'more opportune environment', as Lund said.

Bitcoin is also more popular among those with a casual interest in cryptocurrency, Balachunas said.

Crypto market makers QCP Capital said a futures ETF could result in synthetic trading activity without actually impacting spot supply.

Traders are buying futures contracts, speculating on the price at a future date, and don't have to hold Ethereum - unlike buying a spot product that holds the underlying asset and therefore affects spot supply.

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The Markets Correspondent at DL News is Adam Morgan McCarthy, a London-based reporter for DL News.