The United States ushered in the listing of 9 futures-based Ethereum ETFs on October 2, but the first day of trading did not bring many amazing performances. The total first-day trading volume of the 9 products was less than 200 Ten thousand U.S. dollars.
These nine new Ethereum ETFs track futures contracts on the price of Ethereum. Among these funds, only 5 funds specifically focus on tracking Ethereum futures, and the other 4 funds track both Bitcoin futures contracts and Ethereum futures contracts.
Eric Balchunas, senior ETF analyst at Bloomberg, wrote on the social platform
The first-ever ETFs based on Ether futures began trading in the US on Monday.
Eric Balchunas has more on “Bloomberg ETF IQ" t.co/YD9XJ6vidP pic.twitter.com/0lGl72Ew0k
— Bloomberg TV (@BloombergTV) October 2, 2023
Overall, trading volume for all nine ETFs totaled less than $2 million on their first day of trading.
One of the most popular futures ETF products is Valkyrie’s BTF, which tracks Bitcoin and Ethereum futures contracts, with a trading volume of only $882,000. It is worth noting that BTF was originally a pure Bitcoin futures ETF and has been trading since October 2021, but has now adjusted its strategy to include tracking Ethereum futures contracts.
Not as good as Bitcoin futures ETFs
The Ethereum Futures ETF’s first-day volume pales in comparison to ProShares’ Bitcoin Strategy ETF (BITO). ProShares' Bitcoin Strategy ETF launched in October 2021 amid a boom in the crypto asset market, with first-day trading volume exceeding $1 billion.
However, analyst Eric Balchunas pointed out that such volume is actually quite high compared to the average traditional financial ETF issuance, although investors tend to favor spot ETF products over futures ETF products.
Why are they all listed on the same day?
Eric Balchunas explained that these 9 futures-based Ethereum ETFs or Ethereum-mixed Bitcoin ETFs are scheduled to be launched on the same day because the U.S. Securities and Exchange Commission (SEC) wants to prevent any one of the funds from gaining exclusive market share. The advantage of seizing the opportunity.
At the same time, although many U.S. companies are competing to dominate the emerging Ethereum futures ETF market, ETF operator Volatility Shares has canceled plans to launch a similar product on the grounds that it currently “does not see the opportunity.”
This article 9 Ethereum futures ETFs launched: first-day trading volume was light, totaling less than 2 million US dollars, first appeared on Blockchain.