Ethereum-based ETF launch passes with little fanfare

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

Pretty meh volume for the Ether Futures ETFs as a group, a little under $2m, about normal for a new ETF but vs $BITO (which did $200m in first 15min) it is low. Tight race bt VanEck and ProShares in the single eth lane. pic.twitter.com/F9AHtrVcVf

— Eric Balchunas (@EricBalchunas) October 2, 2023

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

According to the specialist's data, the leader was Valkyrie's product based on a basket of the first- and second-largest cryptocurrencies by market capitalization ($787,000). The Ether futures ETF from VanEck barely topped $300,000.

NEW: Here's the entire list of #ethereum futures ETFs potentially launching Monday. It's gonna be a crazy day to say the least. pic.twitter.com/02JYbfU4Pg

— James Seyffart (@JSeyff) September 29, 2023

Total trading across six ETFs based solely on Ethereum futures amounted to $1.92 million for the day, including ProShares Ether Strategy ETF — $879,000.

The six new funds by ProShares, VanEck and Bitwise Asset Management allow investors to take positions in exchange-traded products based on ether for the first time. The six funds saw trading volumes total only $1.92 million in their first day of trading, according to data from… https://t.co/ASebNWJHO6

— Wu Blockchain (@WuBlockchain) October 3, 2023

A key difference among the products is the level of fees.

NEW: Here's the entire list of #ethereum futures ETFs potentially launching Monday. It's gonna be a crazy day to say the least. pic.twitter.com/02JYbfU4Pg

— James Seyffart (@JSeyff) September 29, 2023

In an interview with Reuters, Kelley Hunt & Charles Айша Хант urged not to interpret the appearance of Ethereum-based products as a signal of the SEC's readiness to approve a spot Bitcoin ETF.

«Заявители [фондов] по-прежнему будут сталкиваться со значительными препятствиями», — предупредила она.

Bloomberg noted that, unlike the two-year-ago Bitcoin ETF start, competitive conditions have tightened amid a bear market.

«Даже если массового спроса не будет, как в случае с BITO […] фирмы вложат немало средств в маркетинг», — указал аналитик Джеймс Сейффарт.

A deputy director of research at VettaFi, Roxanna Islam, said tepid interest in Ethereum futures ETFs stems from expectations for spot versions, notably for Bitcoin. She estimates this could occur in early 2024.

Bloomberg data show that since the start of the year the five largest crypto ETFs drew only $30 million, even as they ranked top in growth (around 80%) among similar products.

According to CoinGecko, overall in the segment during the period investors invested $105 million. Meanwhile, Ethereum funds saw withdraw $114 million.

The lack of hype around the launch led to selling in the second-largest cryptocurrency.

According to CoinGecko, Ethereum fell by 4%. The declines of other top-10 assets ranged from 2% to 2.9%, while Solana rose 0.7%.

On September 27, the SEC postponed the decision on several spot Bitcoin ETF applications from ARK Invest and 21Shares until January 2024. The Global X Bitcoin Trust ETF deadline was moved to November 2023.

Later, the Commission delayed responses to requests from BlackRock, Invesco, Bitwise and Valkyrie.