- Ethereum’s ETF launched last week, disappointed speculators due to a low start.
- The overall trading volume for the six funds, including the largest ProShares Ether Strategy ETF, was $1.92 million.
- Analysts predict a pattern similar to Bitcoin’s early ascent and decline, indicating a possible scenario for Ethereum.
The crypto community’s attention has been drawn to the performance of the much-anticipated Ethereum future exchange-traded funds (ETF) that debuted last week.
On the other hand, analysts have presented explanations for why the first week did not match expectations in terms of price and value.
Ethereum Futures ETFs Lack Significant Interest
The debut of multiple Ethereum Future ETFs last week disappointed many speculators who had been anticipating it for over a year.
Nine Ethereum Futures ETFs were offered to the market. ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares are among the companies that have created these funds.
According to a recent report, Ether Futures attracted slightly under $2 million in flows upon its October 2 introduction.
Ethereum’s price surged by around 4.5% the day before the launch on October 1 in anticipation of a price increase. However, it closed on October 2 at $1,659, a 4% decrease.
The price of Ethereum at the time of publication is $1,592.
The six funds traded for a total of $1.92 million on October 2. However, the ProShares Ether Strategy ETF contributed significantly, with a trading volume of $878,560, accounting for 45.7% of the total volume.
This starkly contrasts the ProShares Bitcoin Strategy ETF (BITO) ‘s fast achievement of $1 billion inflow in just two days following its 2021 launch. However, the entire cryptocurrency market was in an intense period then.
Meanwhile, another X (previously Twitter) user pointed out that it represented only 0.2% of the trade volume on the first day of Bitcoin futures trading.
However, Eric Balchunas, senior ETF analyst at Bloomberg, stated there is no need for concern; this has happened before. He said, “Any crypto-related launch tends to be a ‘buy the rumor, sell the news’ event.”
The Future of Ethereum Spot ETFs
He also saw a drop in the price of Bitcoin after the initial increase in BITO demand. He proposes a similar prospective scenario for the price of Ethereum:
“If you look at BITO, Bitcoin went down a lot after that […] I wouldn’t be surprised if this happens with futures ETFs either.”
Meanwhile, the SEC recently stated that it would postpone its judgment on Ethereum spot ETF clearance. There will be no announcement until at least the end of 2023.
The SEC has postponed the outcome of both the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF, according to two separate filings.
Both firms submitted proposals for the Ethereum spot ETF on September 6.
If approved, these would be the first Ether-based ETFs in the US to provide direct exposure to ETH.
Meanwhile, Grayscale joined the list of investment firms that applied for an Ethereum spot ETF on October 2. The New York Stock Exchange (NYSE) submitted the request to the SEC in a filing.
The application requests authority to convert Grayscale Ethereum Trust (ETHE) into a spot Ethereum ETF.
