Ethereum futures ETFs get off to a slow start

Ethereum futures ETFs get off to a slow start

After launching on Monday, six ETH futures ETFs got off to a slow start. The funds attracted just under $2 million in trading volume.

Investors have yet to begin their exploration of 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.

ETFs trade on the future value of an asset, while spot ETFs trade on the current value of an asset.

There are no cryptocurrency spot ETFs approved by US regulations, but several big financial firms like BlackRock and Fidelity have asked to launch them.

ProShares' EETH and VanEck's EFUT were the most popular Ethereum-only funds, each registering around $500,000 and $50,000 in trading volume.

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

In a similar vein to Bitcoin futures ETFs, ProShares is likely to lead the way when it comes to Ethereum.

Although Monday's launch mirrors Bitcoin's 2021 debut, it was completely different when it comes to volume.

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

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

Bitcoin is also just more popular among those with a casual interest in cryptocurrency, said Bloomberg Intelligence ETF analyst Eric Balachunas.

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

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

What will you expect on day 1 of Sam Bankman-Fried's trial: TRM Labs' Ari Redbord - DL News.

Adam Morgan McCarthy, DL News' London-based Markets Correspondent, answers questions.