- This Monday, the U.S. market welcomed nine highly anticipated Ethereum-based Exchange Traded Funds (ETF).
- A prominent market analyst maintains that the recently launched ETFs have underperformed in trading volume since it went live.
The first-ever Ethereum Exchange Traded Fund (ETF) has made its way into the U.S. market, and investors are as excited as they are curious.
The Ether Futures went live and began trading on Monday, marking the end of a long-standing battle by leading investment firms. Notably, leading firms in the cryptocurrency market have collectively attempted to provide other investment options for the second-largest cryptocurrency by market cap.
A total of nine Ethereum futures exchange-traded funds (ETFs) launched on the same day, for the first time in the United States.
The investment firms behind the ETFs include Bitwise, Valkyrie, Kelly, VanEck, ProShares. These ETFs were officially launched on the Chicago Board Options Exchange (CBOE) Monday morning.
While Proshares launched three funds, Bitwise launched two WTFs, along with Bitwise Bitcoin. On the other hand, VanEck’s Ethereum Strategy ETF (EFUT) went live this Monday, all side three other ETFs, including one from a Brazilian fund manager Hashdex
Senior market analyst at Bloomberg speaks on the Ethereum Futures ETF launch, low trading volume, and rumors on Bitcoin ETFs
Meanwhile, market sentiments have been mixed since the launch of these ETFs. Some prominent figures are positive about the new development, while others are on the lookout to see how the coming weeks unfold. Eric Balchunas, a Senior ETF Analyst at Bloomberg took to X, to share his thoughts on the ETF rollout.
He dissects the state of the market, asserting that no one Ethereum Futures ETF has outperformed another at this time. According to the analyst, the ETFs have severely underperformed and failed to meet his expectations.
“Unprecedented day today with multiple ETFs all launching at the same time. No clear winner has emerged, all of them were pretty average, lower than I would have predicted, but it’s a long run and remember, these hold futures (ETF investors much prefer physical to derivatives)” the analyst asserted.
In another post, the analyst remarked that the collective trading volume was under $2 million, not long after the launch. This is considered to be normal for a new ETF. However, compared to ProShares Bitcoin Strategy ETF (BITO), [which recorded $200m in trading volume within the first 15 minutes of its launch]these figures are considered to be low.
Speaking on the rumors surrounding the highly anticipated Bitcoin ETFs, the analyst had this to say;
“Yes, while the SEC delayed spot bitcoin filings last week, they also sent the issuers comments to address their S-1 filings (related to plumbing, and legal). This is a break from the typical pattern of delay, delay, radio silence then denial. A welcome sign IMO although the timeline is unclear.”
