Ethereum ETFs just $1.7M in trading on the market

Ethereum ETFs just $1.7M in trading on the market

On their first day, seven ETH futures ETFs drove just $1.7M in trading.

The equities market is still in a state of volatility as institutional asset managers begin planning for ETFs investing in ETH.

Investors raced to buy Ether, after VanEck, the $80B investment manager, announced its intent to launch an ETF for Ether futures ETF on Sept. 28. On Oct. 1, ETH rallied to its highest level since mid August after rival asset managers published their own ETF announcements, propelling Ethereum to a local value of roughly $1,740.

Although asset managers have lined up to launch their own Ethereum ETFs, their Oct. 2 launch was a sell-on-the-news event.

The value of bitcoin is currently down 5.5% from its local high, last changing hands for $1,654, while $40B was wiped out of the combined crypto market cap. Only four of the top 100 digital assets have experienced a gain of more than 1% over the past 24 hours, while a quarter of leading cryptocurrencies shed more than 1% from their value.

VanEck was not alone in launching an ETF on Oct. 2, with rival asset issuers schedule the launch of their own products for the same day.

ProShares is taking note of the Ether ETF's bandwagon and jumping on the bandwagon. On Sept. 29, the firm said it would debut the ProShares Ether Strategy ETF plus two ETFs offering mixed exposure to ETH and BTC.

Bitwise also unveiled its own ETFs investing in ETH, including a product offering mixed exposure to ETH and BTC. Valkyrie has also said that it will convert its Bitcoin ETF into ETH as well.

Ether futures ETFs from Volatility Shares and Kelly Strategic Management also were greenlit on Oct. 2 as well.

But Balchunas, a senior ETF analyst at Bloomberg, says seven debuting Ether ETFs had driven just $1.7M worth of volume on Oct. 2. Although Bulchunas said that the activity was 'about normal for a new ETF,' he said that the debut of ProShares' Bitcoin Strategy ETF drove $200M in its first 15 minutes after going live in October 2021.

Grayscale, the crypto-focused asset manager, also filed a U.S. Securities and Exchange Commission request on Oct. 1, asking to convert its Ethereum trust into an ETF. The Grayscale Ethereum Trust, which is the largest ETH investment product on the market, boasts nearly $5B in assets, or 2.5% of ETH's circulating supply.

In another nod to Ethereum, UBS Asset Management, a subsidiary of the $4T investment firm, announced its plans on Oct. 2 to launch a pilot program for an Ethereum-based tokenized Variable Capital Company investing in real-world assets.