Nine Ethereum ETFs Launched On Same Day, But Unimpressive Volume

Ethereum (ETH) exchange traded-funds (ETFs) were launched with quite an enthusiasm, but its trading volume did not resonate the same. Notably, nine Ethereum futures ETFs were launched on Monday, October 2nd. Analysts noted that trading volume did not swell enough despite the number of launched ETFs and excitement around it. 

Well-known senior ETF analyst at Bloomberg, Eric Balchunas took to X (formerly Twitter) to inform about the “unprecedented day.” He cited there was “no clear winner” out of multiple ETFs that launched at the same time. The performance of all the ETH ETFs was “pretty average.”

The crypto industry is seeking traditional finance-like exchange-traded funds with cryptocurrencies as underlying assets. Citing the growing popularity, many entities have ventured into launching the crypto ETFs, where Bitcoin and Ethereum ETFs remained prominent. 

In the wake of the same efforts, about nine new Ethereum ETFs were launched on October 2, 2023. These products, by design, track futures contracts linked with the value of ETH. Out of nine products, five of them specifically facilitate Ethereum services while four track a mix of futures contracts of Bitcoin (BTC) and Ethereum (ETH). 

Collectively, all the launched ETFs, as reported, managed to accumulate a couple of million USD. Overall, the trading volume remained lower than $2 Million. 

Ethereum Futures ETFs Lost by First Bitcoin Futures ETF

Though the comparison of leading cryptocurrencies does not make sense since they both hold different utilities, their ETF contracts bring them closer given similar trading offerings. 

Among recently launched Ethereum futures ETFs, Valkyrie Investment’s Valkyrie Bitcoin and Ethereum Strategy ETF (BTF) accumulated the most volume. The investment vehicle tracks BTC and ETH combined generated trading volume of up to $882K. 

Comparatively, the first Bitcoin futures ETF from ProShares dubbed ProShares Bitcoin Strategy ETF (BITO), which launched in October 2021, hit a volume of over $1 Million on the very first day of trading. 

Rapidly Growing Crypto ETF Offerings and SEC’s Delays

In the last several months, the crypto ETF filings soared significantly in order to cater to the growing demand. This trend saw the inclusion of traditional finance giants including BlackRock, Valkyrie, Fidelity, VanEck, Invesco, WisdomTree, among several others. These firms filed with the SEC for Bitcoin spot ETFs, the launch of which still awaits approval from the financial regulator. 

However, the Securities and Exchange Commission reportedly delayed the approval of spot Bitcoin ETFs for the aforementioned firms. The delay gave the regulator a window of another 45 days to reconsider applications. 

Steve Anderrson
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