The launch of Ethereum-based ETF went off without any fuss


In the first 15 minutes after the start of the session, the trading volume of Ethereum-ETF based on those traded on CME futures did not exceed $2 million. This contrasts with the debut of similar Bitcoin-based instruments, where the figure was 100 times higher.

According to Bloomberg analyst Eric Balchunas, these figures are generally typical for the new ETF, but “small” for an asset like Ethereum.

According to the data presented by the specialist, the leader was the product from Valkyrie based on a basket of the first and second cryptocurrencies by capitalization ($787,000). VanEck’s Ethereum futures-only ETF barely broke $300,000.

In total, the turnover for six exchange-traded funds based only on Ethereum futures at the end of the day amounted to $1.92 million, including $879,000 for the ProShares Ether Strategy ETF.

The key difference between the products is the size of the commissions.

Kelley Hunt & Charles CEO Aisha Hunt, in an interview with Reuters, urged not to interpret the emergence of Ethereum-based products as a signal of readiness SEC to the approval of spot Bitcoin ETFs.

“The applicants [фондов] will continue to face significant obstacles.”she warned.

Bloomberg noted that, unlike the situation two years ago, when Bitcoin ETF trading started, competitive conditions have become tougher in light of the bear market.

“Even if there is no mass demand, as in the case of BITO […] companies will invest a lot of money in marketing”,” said analyst James Seyffarth.

The specialist provided data on open interest for futures on Ethereum, which is approximately a fifth of the same figure for Bitcoin. According to his calculations, demand for ETFs could range from $100 million to $200 million.

“I wouldn’t say it will be a dud. But it’s also unlikely that this will become another BITO,” – he shared.

According to VettaFi Deputy Director of Research Roxanne Islam, the sluggish interest in Ethereum-based futures ETFs is due to expectations for spot versions, primarily Bitcoin. According to her estimates, this could happen in early 2024.

According to Bloomberg, since the beginning of the year, the five largest crypto ETFs have raised only $30 million, despite the fact that they were among the leaders in growth (an average of +80%) among other similar products.

According to CoinShares, in total, investors invested $105 million in the segment during the specified period. At the same time, they withdrew $114 million from Ethereum funds.

The lack of excitement around the launch of the ETF led to sales of the second largest cryptocurrency by capitalization.

15-minute chart of ETH/USDT on the Binance exchange. Data: Tradingview.

According to CoinGecko, the second Ethereum fell by 4%. The decline in other assets in the top 10 by value was 2–2.9%, while Solana rose in price by 0.7%.

Recall that on September 27, the SEC postponed its decision on several applications for spot Bitcoin ETFs from ARK Invest and 21Shares until January 2024. For the exchange-traded fund from the Global X Bitcoin Trust, the deadline has been extended to November 2023.

The Commission later rescheduled its response to requests from BlackRock, Invesco, Bitwise and Valkyrie.

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