The first Ethereum futures exchange-traded funds (ETFs) collectively registered less than $2 million in volume on the day of their launch in the US market.
Bloomberg senior ETF analyst Eric Balchunas noted that as a group, the first Ethereum futures ETFs to list on U.S. exchanges totaled nearly $2 million in trading volume, a figure that was well below the $200 million in volume that ProShares’ ProShares Bitcoin Strategy ETF (BITO) recorded in the first 15 minutes on its launch day in 2021.
On Tuesday, a total of 1,000 shares were listed 9 Ethereum Futures Contracts ETFs, which were approved by the United States Securities Exchange Commission (SEC) this week.
According to Balchunas, Valkyrie and VanEck ETFs saw the highest trading volume on their first day of trading. The lowest trading volumes were for ETH futures exchange-traded funds launched by firms Bitwise, ProShares and Kelly.
However, despite the low volume recorded by all these investment funds, compared to BITO, the analyst estimates that Ethereum futures ETFs had a modest reception by investors, which is understandable considering the current conditions of the crypto market and the macroeconomic environment in general.
Balchunas noted that trading volumes for each of the SEC-approved Ethereum futures ETFs were “fairly average,” though well below his initial estimates. Still, these ETFs are likely to close the week with a combined AUM of around $200 million, he said.
The senior analyst from Bloomberg also said that it is worth remembering that investors in exchange-traded funds have expressed a greater preference and interest for physical ETFs than for derivative ETFs.
The wait for a Bitcoin spot ETF continues
While the SEC marked a historic day on Tuesday for both the financial and cryptocurrency industries by approving multiple ETF applications at the same time, the crypto community and investors at large are still waiting for the arrival of a Bitcoin spot ETF, which would facilitate direct access to the cryptocurrency.
Several financial titans are seeking SEC regulatory approval to launch an exchange-traded fund where investors can gain exposure to the spot price of bitcoin. They include BlackRock, Fidelity, Ark Invest, Hashdex, Bitwise, Invesco, Galaxy Digital, Vakyrie, Wisdomtree and Franklin Templeton.
However, the SEC continues to delay its decision on the ETF applications submitted by these companies and it is still unclear whether it will finally give its approval to the ETFs that want to hold bitcoins.
A Bitcoin spot ETF would offer investors an easier and more familiar way to access the real price of Bitcoin without needing to own or hold the cryptocurrency.
On the other hand, Balchunas indicated that while the SEC has delayed its responses to applications for a Bitcoin spot ETF, the regulator has also sent applicants comments to address their S-1 filings, a development that is seen as “a break from the typical pattern of delay, silence, and then denial” that the regulator has sustained so far. This could be taken as a welcome sign for such an investment vehicle, although there is still no clear timeline for its possible approval, concluded The analyst
Continue reading: A coalition of congressmen calls on the SEC to immediately approve a Bitcoin spot ETF
